Question: Question3: ALHILAL Inc. is considering two mutually exclusive projects with widely differing lives. The company's cost of capital is 14%. The project cash flows are
Question3: ALHILAL Inc. is considering two mutually exclusive projects with widely differing lives. The company's cost of capital is 14%. The project cash flows are summarized as follows: Cash Flows CFO Project A -30,000 Project B -28,000 CF1 17,500 8,200 CF2 18,500 8,200 CF3 19,500 8.200 CF4 8,200 CFS 8,200 CF6 8,200 CF7 8,200 CF8 8.200 CF9 8,200 1. Compare the two projects by using NPV. 2. Compare the projects by using the replacement chain approach. 3. Compare the projects by using the EAA method. 4- Chose a project and justify your choice
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