Question: Panhandle Corp. is considering three projects. Each project has an initial outlay of $80,000. Project A is expected to earn $25,000 per year for four

Panhandle Corp. is considering three projects. Each project has an initial outlay of $80,000.

Project A is expected to earn $25,000 per year for four years.

Project B is expected to earn $110,000 in year four.

Project C is expected to earn $5,000 in year one, $15,000 in year two, $15,000 in year three, $70,000 in year four.

The WACC is 7.5%.

What is the difference between the NPV of B and C?

B is larger by $246.46
C is larger by $246.46
B is larger by $5000
C is larger by $4315.37

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