Proast pic is considering two investment projects whose cash flows are: The company's required rate of return
Question:
The company's required rate of return is 15 per cent.
a. Advise the company whether to undertake the two projects.
b. Indicate the maximum outlay at time 0 for each project before it ceases to be viable.
Transcribed Image Text:
Points in time (yearly intervals) Project A Project B -120,000 60,000 45,000 42,000 18,000 -120,000 15,000 45,000 55,000 60,000
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a Accept project A and reject project B because A generates a return greater than that required by t...View the full answer
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