Your company. is considering two projects to invest next year. Both projects have the same start-up costs. Project A will produce annual cash flows of $42,000 at the beginning of each year for eight years. Prooject B will produce cash flows of $48,000 at the end of each year for seven years. The company requires a 12% return. Required: a)Which project should the company select and why? b)Which project should the company select if the interest rate is 14% at the cash flows in Project B is also at the beginning of each year?

Answer rating: 100% (QA)

a Project A Annual cash flows42000 Interest rate 012 Number years8 Net present value N... View the full answer