Question: you are deciding to choose between two mutually exclusive projects X will cost $6,000 to Install and $3100 a fo run and boption 2 project
you are deciding to choose between two mutually exclusive projects X will cost $6,000 to Install and $3100 a fo run and boption 2 project will cost $ to Install and $2600 for tour Let the WACC = 0.09
Estimate the NPV of project x ?
estimate the equivaient annuity cost of project x ?
estimate the NPV of project Y ?
estimate the equivaient annuity cost of project Y ?
which option would you choose option 1 or 2 ?
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