Question: Consider the following 2 mutually exclusive projects: Project A: The project cost and initial cash outlay of $50,000 and will generate cash inflows of $24,000

Consider the following 2 mutually exclusive projects: Project A: The project cost and initial cash outlay of $50,000 and will generate cash inflows of $24,000 for 3 years. Project B: The project will cost $80,000 and will generate $25,000 in cash inflows per year for 5 years. At the end of the last year, at the same time as the last cash inflow of $20,000, the firm will be able to sell the capital assets for $20,000. For the rest of this question, assume that the cost of capital is 12%. Calculate the NPV for project A: Calculate the NPV for B. Calculate the Equivalent Annual Cash Flow for Project A (Alternatively,. you can calculate the NPV using the Replacement Chain Method.) Calculate the Equivalent Annual Cash Flow for Project B (Alternatively, you can calculate the NPV using the Replacement Chain Method.) You recommend that the firms shouiu do project

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