Question: find solution (b) A company is deciding to choose between two mutually exclusive projects A and B. Project A requires an initial investment of Rs.

find solution (b) A company is deciding to choose between two

find solution

(b) A company is deciding to choose between two mutually exclusive projects A and B. Project A requires an initial investment of Rs. 300,000 and is expected to generate cash flow of Rs. 150,000 per annum for 3 years of its life. Project B, on the other hand, requires Rs. 340,000, has a life of 6 years, and would generate Rs. 100,000 every year. Which proposal should be accepted? Assume a 10% rate of interest

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