Question: Calculate the initial cash flows (CF0) for the following projects. Which project has a larger CF0? a. Project A: equipment purchase price = $200,000; installation

Calculate the initial cash flows (CF0) for the following projects. Which project has a larger CF0?

a. Project A: equipment purchase price = $200,000; installation cost = $5,000; extra working capital requirement = $50,500

b. Project B: machine purchase price = $120,500; shipping cost = $10,000; decrease in working capital = $20,000; opportunity cost = $80,500


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