You are comparing two mutually exclusive projects. The first
provides after-tax cash flows of $50,000 per year for 5 years and
costs $100,000 to pursue. The second provides after-tax cash flows
of $25,000 per year for 25 years, but those cash flows do not begin
until 4 years from now. This project costs $30,000 to pursue. Both
projects have a required return of 12%. Select the option below
with the correct NPVs and the correct project choice.
NPV1=$80,238.81; NPV2=$94,611.42; choose...