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You have the choice between two independent projects (A & B). () indicate negative values. Time Proj A Proj B 0 ($8,500) ($8,500) 1 $2,500
You have the choice between two independent projects (A & B). () indicate negative values.
Time | Proj A | Proj B |
0 | ($8,500) | ($8,500) |
1 | $2,500 | $2,000 |
2 | $2,500 | $2,250 |
3 | $2,500 | $2,500 |
4 | $2,500 | $2,750 |
5 | $2,500 | $3,000 |
Assuming your cost of capital is 14%, which project would you accept?
Group of answer choices
Neither project
Project B only
Project A only
Both projects
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