A company has the option to invest in either Project X or Project Y. Project X requires
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A company has the option to invest in either Project X or Project Y. Project X requires an initial investment of $100,000 and is expected to generate cash flows of $30,000 at the end of each year for the next five years. Project Y requires an initial investment of $80,000 and is expected to generate cash flows of $40,000 at the end of each year for the next five years. Which project should the company choose if it requires a return of 15% on its investments?
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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