Question: #33 A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows
#33
A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows for each project are shown below:
| Year | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Project A | -20.00 | 8.00 | 8.00 | 7.00 | 5.00 |
| Project B | -31.00 | 9.00 | 9.00 | 9.00 | 7.00 |
The cost of capital for the firm is 8.00%.
With the projects independent, what projects will you accept given the firm's cost of capital? (A, B, BOTH, or NONE)
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Answer format: Text
#35
Consider the following project:
| Year | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Project A | -20.00 | 8.00 | 7.00 | 10.00 | 4.00 |
Find the payback for this project. (ROUND TO TWO DECIMAL PLACES)
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Answer format: Number: Round to: 2 decimal places.
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