Question: Question 2 (6 points) Your division is considering two investment projects, each of which requires an up-front expenditure of $50 million. You estimate the cost
Question 2 (6 points) Your division is considering two investment projects, each of which requires an up-front expenditure of $50 million. You estimate the cost of capital to be 8% and that the investment will produce the following after-tax cash flows (in millions of dollars). Year Project A Project B 2 10 15 25 30 30 30 10 10 4 What is the discounted payback of Project B? 1.14 years 1.86 years 2.14 years 2.86 years
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