Project A requires an immediate investment of $8000 and another $6000 in three years. Net returns are
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Project A requires an immediate investment of $8000 and another $6000 in three years. Net returns are $4000 after two years, $12 000 after four years, and $8000 after six years. Project B requires an immediate investment of $4000, another $6000 after two years, and $4000 after four years. Net returns are $3400 per year for seven years. Determine the net present value at 12%. Which project is preferable according to the net present value criterion?
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Related Book For
Contemporary Business Mathematics With Canadian Applications
ISBN: 9780135285015
12th Edition
Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday
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