Question
Year Project A Project B 0 $60,000 $60,000 1 20,500 18,200 2 15,600 24,400 3 24,400 15,600 4 18,200 20,500 (b) If the required rate
| Year | Project A | Project B |
| 0 | $60,000 | $60,000 |
| 1 | 20,500 | 18,200 |
| 2 | 15,600 | 24,400 |
| 3 | 24,400 | 15,600 |
| 4 | 18,200 | 20,500 |
(b) If the required rate is 12%, what is the NPV for each of the projects? Which project will you choose if you apply the NPV rule?
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Authors: Be Mi Real Estate Store
1st Edition
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