Question
Two projects have the following cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 Cash flow Project 1 $140 $200 $245 $275
Two projects have the following cash flows:
|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Cash flow Project 1 | $140 | $200 | $245 | $275 | $300 |
| Cash flow Project 2 | $300 | $350 | $500 | $0 | $0 |
If the Yield is 10% per year for each project. Which is the project with the lowest investment (lowest present value)?
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
11th Edition
0470004460, 978-0470004463
