Question: QUESTION 32 Bob's Flower Delivery is considering two mutually exclusive projects with the following cash flows. Project A is delivering cactuses, while project B is

 QUESTION 32 Bob's Flower Delivery is considering two mutually exclusive projects

QUESTION 32 Bob's Flower Delivery is considering two mutually exclusive projects with the following cash flows. Project A is delivering cactuses, while project B is delivering sunflowers. What investment decision would Bob make if the cost of capital was 6% for both projects? (5 points) Period 0 Project A $125,000 $46,000 Project B $135,000 $50,000 $90,000 1 2 $79,000 $51,000 $60,000 3 O Project A Project B O Both O Neither QUESTION 33 Bob's van requires yearly maintenance. Bob can pick option A with intense maintenance of the van or a general maintenance option B. Both options have costs presented below. Considering that Bob is required by law to have some van maintenance (both options are with replacement), which option should he pick based on NPC with replacement? Discount rate is 5%. (do not take any depreciation into account, this is a cost analysis question). (5 points) Year Intense General Maintenance (A) Maintenance (B) 0 $1,000 $900 1 $170 $120 2 $150 $130 3 $140 $140 $130 5 $100 6 $90 O Option A, because it is 1671.35 every 6 years O Option B, because it is 2335.64 every 6 years Option B, because it is 1253.14 every 3 years O Neither O Both OOO000

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