Question: please help and explain Capital Budgeting Practice Quiz You are evaluating projects 1 and 2. The projects have the following yearly opera Depreciation expense is
please help and explain
Capital Budgeting Practice Quiz You are evaluating projects 1 and 2. The projects have the following yearly opera Depreciation expense is $2,000 per year for each project. Assume a 1 profit. of 0% required rate return. Projsct 1 Prolect 2 Year 1 $3,370 $ 8,000 Year 2 $ 3,500 $ 8,000 thn Year 3 diV.e. Year 4 $ 4,100 $ 8,000 4,270 $ 8,000 Year 5 $ 8,000 Investment $18,000 $33,200 Required Using Net Present Value analysis, please answer the following questions: 1. Assuming you had $100,000 to invest, which investment would you make, if any, and why? 2. Assuming you had $35,000 to invest, which investment would you make, if any, and why
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