Question: step by step Proposal X and proposal Y require an initial investment of $10,000 and are expected to generate an equal cash inflow of $20,000
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Proposal X and proposal Y require an initial investment of $10,000 and are expected to generate an equal cash inflow of $20,000 over their life of four years. The net cash inflow for each year of life of both the proposals is given below: Required: 1. Compute the present value of cash inflows generated by both the proposals assuming a discount rate of 18%. 2. Which of the two proposals is better if compared using net present value method
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