Question: Jekyll & Hyde Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project

Jekyll & Hyde Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project are given in the following table. Which project should be accepted?

Project 2 Year Project 1 -$1,250,000 -$1,250,000 250,000 350,000 350,000 350,000 3 450,000 350,000 4 500,000 350,000 750

Project 2 Year Project 1 -$1,250,000 -$1,250,000 250,000 350,000 350,000 350,000 3 450,000 350,000 4 500,000 350,000 750,000 350,000

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