Question: Robbins Irrigation System, Inc is considering two mutually exclusive projects. Both projects cost $250,000 and provide the following cash flows over a period of
Robbins Irrigation System, Inc is considering two mutually exclusive projects. Both projects cost $250,000 and provide the following cash flows over a period of 5 years. Project BB Years (t) 0 1 2 3 Project A 4 5 Cash inflows ($250,000) $25,000 $75,000 $37,500 $100,000 $12,500 $175,000 $12,500 $225,000 $2,500 Robbins Irrigation System uses 12 percent discount rate. Based on the information given, ($250,000) $300,000
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