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Which one of these assertions about statemen 1 and statment 2 is true? Project A would cost $53,000 today and have rhe following other expected
Which one of these assertions about statemen 1 and statment 2 is true?
ne of the assertions about statement and statement is true? Pro and $21,000 in 4 years. The cost of capital for project Ais 1457 perce 500 in 3 years, and $27,000 in 4 years. The cost of capital for project B Fement 1: Project A would be accepted based on the projects internal tal zatement 2: Project B would be accepted based on the project's payback pe a. Statement is true and statement is true b. Statement is true and statement 2 is false C. Statement is false and statement is true d. Statement 1 is false and statement 2 is false Project A would cost $53,000 today and have rhe following other expected cash flow: $17,000 in 1 yeae, $23,000 in 2 yeaes $14,000 in 3 years and $21,000 in 4 years. The cost of capital for project A ie 14.57%
Project B would cost $209,000 today and have the following orher expected cash flows: $98,000 in 1 year, $83,000 in 2 years,
$65,000 in 3 years and $27,000 in 4 years The cost of capirs for project B is 17.28%
Statment1: A would be accepeted based on the project internal rate of return (IRR) and the IRR rule.
Statement 2: B would be accepted based on rhe projects payback period and the paybqck rule if the payback threshold is 2.39 years
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