Question: Sam's Smoothies is analyzing two mutually exclusive projects Berry and Monkey and with the following cash flows Project BERRY 0 -20000 6000 2 12000 3
Sam's Smoothies is analyzing two mutually exclusive projects Berry and Monkey and with the following cash flows Project BERRY 0 -20000 6000 2 12000 3 10500 Project MONKEY -18000 9000 8000 7000 If Charlie's Chocolates has a cost of capital is 7.125%, which project(s) should the company accept? Berry because its NPV is $4,598.91. O Monkey because its NPV is higher than Berry's. Neither because we do not the company only has $35,000 available for capital budgeting projects and neither has an NPV higher than this level. Both because they both have a positive NPV
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