Question: ASAP SafeVeg is deciding between two projects Project West and Project East for its initiative in providing chemical-free vegetables to the surrounding population. These two

ASAP

SafeVeg is deciding between two projects Project West and Project East for its initiative in providing chemical-free vegetables to the surrounding population. These two projects are mutually exclusive and the selected project will be replaced by an identical project in perpetuity. The required rate of return is 8%. The table below shows the annual cash flows for the two projects. Year 0 1 2 3 4 Project West Cash Flow -20,000 7,000 8,250 9,600 Which project should SafeVeg select? Why? Show your workings for full marks. Round your answers to the nearest dollar. Project East Cash Flow -30,000 5,000 7,200 9,450 17,750

Sateveq is cecidng tetween two pro ects Propect West and Propect East for its intiat ve in providing chemical-free vegetables to the surrounding population. These two profects are mutually exclushe and the selected project will be repaced by an identical project in perpetuity The required rate of return is 8% Thetable below shows the annual cash fows foc the fwo projects 5. Round your ancwers to the nearest dollar

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