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In: Finance
Question #10: Perry Inc. uses the Net Present Value method and requires a return of 11%....
Question #10: Perry Inc. uses the Net Present Value method and requires a return of 11%. Perry Inc. is considering the following 2 mutually exclusive projects:
|
Cash Flow for |
||
|
Year |
Project A |
Project B |
|
0 |
-$77,500 |
-$77,500 |
|
1 |
$43,000 |
$21,000 |
|
2 |
$29,000 |
$28,000 |
|
3 |
$23,000 |
$34,000 |
|
4 |
$21,000 |
$41,000 |
Required:
- Using the Net Present Value method, should Perry accept or reject Project A? Project B?
- why?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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