Question
You are considering two mutually exclusive projects with the following cash flows. Which project would you choose? (The following is the only information you have.
You are considering two mutually exclusive projects with the following cash flows. Which project would you choose? (The following is the only information you have. Dont ask for more because I dont have any more information?) Hint: Find the crossover rate to answer
| Year | Project A | Project B |
| 0 | -240,000 | -198,000 |
| 1 | 0 | 110,800 |
| 2 | 0 | 82,500 |
| 3 | 325,000 | 45,000 |
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Handbook Of Quantitative Finance And Risk Management
Authors: Cheng-Few Lee, John Lee
2010th Edition
0387771166, 978-0387771168
