Question
You are considering the following two projects and can take only one. Your cost of capital is 8%. The cash flows are as follow: Year
You are considering the following two projects and can take only one. Your cost of capital is 8%. The cash flows are as follow:
-
Year
0
1
2
3
4
A
-1000
300
500
300
300
B
-1000
400
100
500
500
Which one do you choose?
A. Project B
B. None of them.
C. Project A.
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
