Question: Pfizer Inc. is evaluating two mutually exclusive projects: Project A: Initial investment $500,000, cash flows $100,000 per year for 5 years. Project B: Initial investment

Pfizer Inc. is evaluating two mutually exclusive projects:

  • Project A: Initial investment $500,000, cash flows $100,000 per year for 5 years.
  • Project B: Initial investment $600,000, cash flows $120,000 per year for 4 years. Using the net present value method and a discount rate of 12%, determine which project should be selected.

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