Question
X-treme Vitamin Company is considering two investments, both of which cost $10,000. The cash flows are as follows. Year Project A Project B 1------- $11,000
- X-treme Vitamin Company is considering two investments, both of which cost $10,000. The cash flows are as follows.
Year Project A Project B
1------- $11,000 $10,000
2------- $8,000 $6, 000
3------- $6,000 $15,000
Which of the two projects should be chosen based on the net present value method? Assume a cost of capital of 10 percent.
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
