Question: Consider two projects with the following cash flows: Projects is a 4 year project with initial (time O) cash outflow of 3000 and time 1
Consider two projects with the following cash flows: Projects is a 4 year project with initial (time O) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively, Project Lis a 4 year project with initial (time) cash outflow of 3000 and time 1 through 4 cash inflows of 400, 900, 1300, and 1500 respectively. Assuming a 5% cost of capital determine which project should be chosen if the projects are mutually exclusive Projects O Project Neither Project Both Projects
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