Question: Jamie Dermott: Mutually Exclusive Project Analysis Jamie Dermott graduated from Midland State University in June Give me your thoughts on these two projects by 9

Jamie Dermott: Mutually Exclusive Project Analysis Jamie Dermott graduated from Midland State University in June Give me your thoughts on these two projects by 9 a.m and has been working for about a month as a junior financial Monday morning. analyst at Caledonia Products. When Jamie arrived at work on Friday morning he found the following memo in his e-mail:

TO: Jamie Dermott

FROM: V. Morrison, CFO, Caledonia Products

RE: Capital budgeting analysis

Provide an evaluation of two proposed projects with the following cash flow forecasts:

Jamie Dermott: Mutually Exclusive Project Analysis Jamie Dermott graduated from Midland State

Project A Project B Initial outlay $(1 10 000) $(1 10000) Year 1 20 000 40000 Year 2 30 000 40000 Year 3 40 000 40000 Year 4 50 000 40000 Year 5 70000 40000

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