The Camel Company is considering two mutually exclusive projects
with the following cash flows. Assume discount rate of 12%.
Compute NPV, IRR, PI. Assume the discount rate is 12%. Please
recommend the firm which project(s) to choose under the following
scenarios:
Year
Project A cash flow
Project B Cash flow
0
-75,000
$-60,000
1
$30,000
$25,000
2
$35,000
$30,000
3
$35,000
$25,000
Assume Independent
Projects: (i) which project(s) would you recommend? (ii) Would your
answer change if the firm...