A company is considering two investment projects. Project A has a cost of $50,000 and is expected
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A company is considering two investment projects. Project A has a cost of $50,000 and is expected to generate cash flows of $10,000 per year for the next six years. Project B has a cost of $70,000 and is expected to generate cash flows of $16,000 per year for the next six years.
Assuming a discount rate of 8%, which project should the company choose based on the net present value (NPV) criterion?
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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