Q5. Consider two competing projects, for which MARR = 12%: Initial Equivalent Investment, P Annuity, A...
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Q5. Consider two competing projects, for which MARR = 12%: Initial Equivalent Investment, P Annuity, A Project Project A Project B $100000 $100000 $23000 $35000 ROR i*% Duration 9 years 17.7% 4 years 15% According to the RoR method, Project A is preferable. However, the company will be able to reinvest the future cash flows at rate 25%, compounded annually. Is Project A still preferable? Q5. Consider two competing projects, for which MARR = 12%: Initial Equivalent Investment, P Annuity, A Project Project A Project B $100000 $100000 $23000 $35000 ROR i*% Duration 9 years 17.7% 4 years 15% According to the RoR method, Project A is preferable. However, the company will be able to reinvest the future cash flows at rate 25%, compounded annually. Is Project A still preferable?
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Answer rating: 100% (QA)
Yes Project A is still preferable even if the company will be able to reinvest the future cash flows ... View the full answer
Related Book For
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
Posted Date:
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