U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of...
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U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are a Project Edge Project Clayton Project Bono Capital investment $160,000 $175,000 $200,000 Annual net income: Year 1 14,000 18,000 27,000 2 14,000 17,000 23,000 3 14,000 16,000 21,000 4 14,000 12,000 13,000 5 14,000 9,000 12,000 $70,000 $72,000 $96,000 Total alvage value. The company's cost of capital is 15% (Assume that cash flows occur evenly thro U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are a Project Edge Project Clayton Project Bono Capital investment $160,000 $175,000 $200,000 Annual net income: Year 1 14,000 18,000 27,000 2 14,000 17,000 23,000 3 14,000 16,000 21,000 4 14,000 12,000 13,000 5 14,000 9,000 12,000 $70,000 $72,000 $96,000 Total alvage value. The company's cost of capital is 15% (Assume that cash flows occur evenly thro
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