Question: Bigbox, Inc. is considering two, mutually exclusive projects. Project A is a five-year project that has an initial after-tax cost of $70,000 and future after-tax

Bigbox, Inc. is considering two, mutually exclusive projects. Project A is a five-year project that has an initial after-tax cost of $70,000 and future after-tax cash inflows of $35,000 per year for 5 year. Project B has an after-tax cost of $30,000 and future after-tax cash inflows of $25,000 per year for two years. If Bigbox uses the net present value method and has a discount rate of 10%. Which project should they choose?

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