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Utilize the four capital budgeting method for both examples. A B c D E F G Example 1 Example 2 2,500,000 Initial Investment 2,500,000 Annual
Utilize the four capital budgeting method for both examples.
A B c D E F G Example 1 Example 2 2,500,000 Initial Investment 2,500,000 Annual cash inflows: $1,000,000 $1,200,000 Annual cash outflows: $600,000 $850,000 Annual non-cash (all depreciation) expenses: Use straight line depreciation to find! 25 30 # of years of expected useful life of project: For both, assume no residual value and Annuity 8% Discount Rate 10.675 8 % Discount Rate 11.258 Step by Step Solution
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