Project b costs 115000 and has a cash flow of 50000 a year


Susan is considering two independent projects with the same discount rate of 10 percent. Project A costs $284,700 and has cash flows of $75,900, $106,400, and $159,800 for Years 1 to 3, respectively. Project B costs $115,000, and has a cash flow of $50,000 a year for Years 1 to 3. She has sufficient funds to finance any decision she makes. Which project or projects, if either, should she accept and why?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Project b costs 115000 and has a cash flow of 50000 a year
Reference No:- TGS01572600

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)