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28 Sep 2019
Two projects being considered are mutually exclusive and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$50,000 -$50,000 1 $15,625 $65,341 2 $15,625 $8,392 3 $15,625 $7,321 4 $95,625 $678 If the required rate of return on these projects is 10 percent, which would be chosen and why?
Two projects being considered are mutually exclusive and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$50,000 -$50,000 1 $15,625 $65,341 2 $15,625 $8,392 3 $15,625 $7,321 4 $95,625 $678 If the required rate of return on these projects is 10 percent, which would be chosen and why?
Nestor RutherfordLv2
28 Sep 2019
Related questions
Consider the following two mutually exclusive projects:
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | รขยย$ | 345,000 | รขยย$ | 48,500 | |||
| 1 | 50,000 | 24,500 | |||||
| 2 | 70,000 | 22,500 | |||||
| 3 | 70,000 | 20,000 | |||||
| 4 | 445,000 | 15,100 | |||||
| Whichever project you choose, if any, you require a 14 percent return on your investment. |
| a-1 | What is the payback period for each project? |
Consider the following two mutually exclusive projects:
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | - 350,000 | - 50,000 |
| 1 | 45,000 | 24,000 |
| 2 | 65,000 | 22,000 |
| 3 | 65,000 | 19,500 |
| 4 | 440,000 | 14,600 |
(You require a 15% return on your investment)
What is the payback period for each project?
