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You are considering two independent projects A a project B. The intitial cash outlay associated with project A is $40,000 and the initial cash outlay
You are considering two independent projects A a project B. The intitial cash outlay associated with project A is $40,000 and the initial cash outlay associated with project B is $60,000. The required rate of return on both projects is 9 percent. The expected annual free cash flows from each project are as follows:
Year Project A Project B 0 ($-40,000) ($-60,000) 1 18,000 19,000 2 18,000 19,000 3 18,000 19,000 4 18,000 19,000 5 18,000 19,000 6 18,000 19,000
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