Question
You have two projects. Project A costs $100 today and will generate a cash flow of $120 in a year. Project B costs $50 that
You have two projects. Project A costs $100 today and will generate a cash flow of $120 in a year. Project B costs $50 that is paid in a year from today and will generate a cash flow of $62 in two years from today. The opportunity cost of capital for both projects is 10%.
Which project would you choose if projects A and B are mutually exclusive (i.e., you can only choose one project) and why?
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The Ascendancy Of Finance
Authors: Joseph Vogl, Simon Garnett
1st Edition
1509509305, 978-1509509300
