In: Finance
Year |
Proj Y |
Proj Z |
0 |
($225,000) |
($225,000) |
1 |
210,000 |
95,000 |
2 |
98,000 |
88,000 |
3 |
— |
73,000 |
4 |
— |
87,500 |
The projects provide a necessary service, so whichever one is selected is expected to be repeated into the foreseeable future. Both projects have an 9% cost of capital.
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