Question: Please include all work and calculations. Thanks Charps-in-the-Bag Inc. is considering two projects. Project A will cost $593,000 and yield annual project cash flows of
Please include all work and calculations. Thanks
Charps-in-the-Bag Inc. is considering two projects. Project A will cost $593,000 and yield annual project cash flows of $260,000 over a 3 year lifespan. Project B will cost $216,000 and yield project cash flows of $78,000 each of the 4 years of its lifespan. If leadership requires a 14% return, which project would you select based on NPV only? O Accept project A; its NPV is $10,624.33 O Accept project Ay its NPV is $164,500.00 O Accept project B; its NPV is $11,269.56 O Accept project B; its NPV is $34,912.00 O Reject both projects
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