Question: answer question in photo Year Ralph Lawrence is considering two mutually exclusive projects. Each has an initial investment of $180,000. The company is uncertain about

answer question in photo Year Ralph Lawrence is considering two mutually exclusive answer question in photo

Year Ralph Lawrence is considering two mutually exclusive projects. Each has an initial investment of $180,000. The company is uncertain about the best capital budgeting technique to use. Its maximum acceptable payback period is 4 years and its cost of capital is 9%. The cash flows for each of the projects are shown in the table. Which project, if any, should Ralph Lawrence take? 1 2 3 4 5 6 Cash inflows Project A Project B $55,000 $95,000 $55,000 $70,000 $55,000 $40,000 $55,000 $40,000 $55,000 $20,000 $55,000 $20,000

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