Question: Use the same project information presented in question 3 but change the discount rate to 7 percent. Does the choice of which project to work
Project 1 costs, Year 1 through Year 4: $100,000; $10,000; $10,000; $10,000
Project 1 revenue: $0; $5,000; $50,000; $110,000
Project 2 costs, Year 1 through Year 4: $50,000; $20,000; $5,000; $5,000
Project 2 revenue: $0; $6,000; $70,000; $100,000
Project 3 costs, Year 1 through Year 4: $120,000; $15,000; $5,000; $5,000
Project 3 revenue: $2,000; $50,000; $100,000; $150,000
Project 4 costs, Year 1 through Year 4: $50,000; $50,000; $10,000; $10,000
Project 4 revenue: $5,000; $70,000; $70,000; $50,000
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Year 1 Year 2 Year 3 Year 4 Project 1 Costs Cash Outflows 100000 10000 10000 10000 Benefits Inflows ... View full answer
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