Question: Please explain how you got to your answer. Thanks ABC Company is evaluating cash flow for two project proposals. Both require a $500,000 initial investment
Please explain how you got to your answer. Thanks
ABC Company is evaluating cash flow for two project proposals. Both require a $500,000 initial investment and generate the following cash flow. The company uses a 5.50% discount rate Year Project A 2 4 Project B $40,000.00 $100,000.00 $48,000.00 $100,000.00 $58,000.00 $100,000.00 $69,000.00 $100,000.00 $83,000.00 $100,000.00 $100,000.00 $125,000.00 $119,000.00 $125,000.00 $143,000.00 $125,000.00 $172,000.00 $125,000.00 7 10 $205,000.00 $125,000.00 Calculate the cumulative cash flow for project A: S(Round to nearest dollar) Calculate the net present value for project A: S(Round to nearest dollar) Calculate the cumulative cash flow for project B: $(Round to nearest dollar) Calculate the net present value for project B: S(Round to nearest dollar) Which project should ABC Company select? OA. Project A Project B B
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