Question: Cheyenne Company is considering two new projects, each requiring an equipment investment of ( $ 9 8 , 5 0 0 )

Cheyenne Company is considering two new projects, each requiring an equipment investment of \(\$ 98,500\). Each project will last for three years and produce the following cash flows:
The equipment will have no salvage value at the end of its three-year life. Cheyenne Company uses straight-line depreciation and requires a minimum rate of return of \(12\%\).
Present value data are as follows:
Cheyenne Company is considering two new projects,

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