- Project S Requires An Initial Outlay At T 0 Of 17 000 And Its Expected Cash Flows Would Be 5 500 Per Year For 5 Yea 1 (30.93 KiB) Viewed 35 times
Project S requires an initial outlay at t = 0 of $17,000, and its expected cash flows would be $5,500 per year for 5 yea
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
Project S requires an initial outlay at t = 0 of $17,000, and its expected cash flows would be $5,500 per year for 5 yea
Project S requires an initial outlay at t = 0 of $17,000, and its expected cash flows would be $5,500 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $44,500, and its expected cash flows would be $11,500 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Select the correct answer. Oa. Project L, because the NPVL > NPVS. Ob. Both Projects S and L, because both projects have NPV's > 0. Oc. Both Projects S and L, because both projects have IRR's > 0. Od. Project S, because the NPVs > NPVL. Oe. Neither Project S nor L, because each project's NPV < 0.