Question: 6 1. Dewars Inc. is considering two mutually exclusive projects with widely differing lives. The company's cost of capital is 1 1%. The project cash
6
1. Dewars Inc. is considering two mutually exclusive projects with widely differing lives. The company's cost of capital is 1 1%. The project cash flows are summarized as follows ProiectA roect B (S30,000) ($30,000) $17,000 7,500 $17,000 7,500 $17,000 7,500 C4 C5 CS C7 Cs Cg S.7500 $7.500 $7.500 a. Compare the projects byusing Payback.v b. Compare the projects byusing NPV.+ c. Compare the projects byusing IRR.+ d. Chose a project andjustify your choice
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