Question: Canfly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows (in millions of dollars): Year
Canfly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows (in millions of dollars): Year Project A Cash Flow Project B Cash Flow 0 -$4.0 ? 1 2.0 1.7 2 3.0 3.2 3 5.0 5.8 The crossover rate of the two projects' NPV profiles is 9 percent. What is the cash flow for Project B at t = 0? O a $8.73 million O b. $7.53 million OC $4.0 million Od $4.51 million Oe $4.22 million 20 30 31
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