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

Expert Solution

jeff jeffy answered 1 year ago

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