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Author Question: Two projects each require a current cash expenditure of $10,000. Project A will generate cash ... (Read 41 times)

iveyjurea

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Two projects each require a current cash expenditure of $10,000. Project A will generate cash inflows of $2,000 per year for the next twelve years. Project B is expected to return $6,000 in 1 year, $4,000 at the end of year 2, and $3,000 in 3 years. Which project should be selected if funds are unavailable to finance both and capital costs are 6%?
◦ Project B because it has a shorter payback period
◦ Project B because it has a higher IRR
◦ Project A because it has a higher IRR
◦ Project A because it has a higher NPV
◦ Project B because it has a higher NPV


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Marked as best answer by iveyjurea on Apr 25, 2021

Jbrasil

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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iveyjurea

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


tranoy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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