Calculate the project cash flow generated for Project A and Project B using the NPV method. Which
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Question:
Calculate the project cash flow generated for Project A and Project B using the NPV method.
Which project would you select, and why?
Which project would you select under the payback method?
The discount rate is 10% for both projects.
Project A: Initial investment: $10,000 year 1: $5,000 year 2: $5,000 Year 3: $5,000
Project B: Initial investment: $55,000 y1: $20,000 y2: $20,000 y3: $20,000
Related Book For
Purchasing and Supply Chain Management
ISBN: 978-1285869681
6th edition
Authors: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
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