Question: You are deciding between two recurring projects. Project A requires $100,000 initial investment and runs for 5 years. Project B requires an initial investment of
You are deciding between two recurring projects. Project A requires $100,000 initial investment and runs for 5 years. Project B requires an initial investment of $80,000 and will run for 3 years. However, due to the limited managerial attention, you will need to choose one out of these two projects. Please choose the appropriate methodology to compare these two projects.
| Net Present Value | ||
| Profitability Index | ||
| Equivalent Annual Annuity | ||
| Return on Investments | ||
| Discounted Payback Period |
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