Question: Which assertion about statement 1 and statement 2 is true? Project A would cost 18,650 dollars today and have the following other expected cash flows:

Which assertion about statement 1 and statement 2 is true? Project A would cost 18,650 dollars today and have the following other expected cash flows: 1,395 dollars in 1 year, 7,558 dollars in 3 years, and 15,029 dollars in 4 years. The cost of capital for project A is 10.79 percent. Project B would cost 60,000 dollars today and have the following other expected cash flows: 27,900 dollars in 1 year, 28,500 dollars in 2 years, 4,500 in 3 years, and 9,289 dollars in 4 years. The cost of capital for project B is 10.4 percent. Statement 1: Project A would be accepted based on the project's net present value (NPV) and the NPV rule Statement 2: Project B would be accepted based on the project's payback period and the payback rule if the payback threshold is 2.83 years Statement 1 is true and statement 2 is true Statement 1 is true and statement 2 is false Statement 1 is false and statement 2 is true Statement 1 is false and statement 2 is false
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