Question: Consider Projects A and B having the following cash flows represented in the figure below. Projects A and B have capitalized costs PA and Ps,
Consider Projects A and B having the following cash flows represented in the figure below. Projects A and B have capitalized costs PA and Ps, respectively. Given interest rate of 10%, which project is more expensive (in terms of capitalized costs)? Explain your choice. $30 830 $15 $15 repeats forever Project A 2 3 6 PA $25 $25 $12.5 $12.5 repeats forever Project B 2 5 6 PA
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