Suppose that project a and b are mutually exclusive which, Accounting Basics

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Suppose that project a and b are mutually exclusive which

Question: 1. Consider the cash flows for the two alternatives assuming Interest rate 10%

n A B

0 $2500.00 5000.00

1 $1000.00 1800.00

2 1800.00 1800.00

3 1000.00 2000.00

4 400.00 2000.00

Suppose that project A and B are mutually exclusive which project would you select based on :

a) Present worth Analysis

b) Future worth analysis.

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Accounting Basics: Suppose that project a and b are mutually exclusive which

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Accounting Basics: Suppose that project a and b are mutually exclusive which

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