Question: Timco is considering two mutally exclusive projects. Project X costs 105 and provides after tax inflows of 90 per year for 2 years. Project Y
Timco is considering two mutally exclusive projects. Project X costs 105 and provides after tax inflows of 90 per year for 2 years. Project Y costs 109 and provides after tax inflows of 70 per year for 3 years. The cost of funds is 8%. Which project should timco choose? Show the numbers to prove it.
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