Question 4 Suppose you are evaluating two mutually exclusive projects. A AND B, with the follwoing cash flow: a) If the

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Question 4 Suppose You Are Evaluating Two Mutually Exclusive Projects A And B With The Follwoing Cash Flow A If The 1 (28.12 KiB) Viewed 31 times

Question 4 Suppose you are evaluating two mutually exclusive projects. A AND B, with the follwoing cash flow: a) If the cost of capital on both project is 5%, which project, if any, would you choose? why? b) if the cost of capital on both projects is 10%, which project, if any, would you choose? why A year 2000 2001 2002 2003 2004 Question 5 * period 0 1 2 3 -$10,000 3,503 3,503 3,503 3.503 you are evaluating an investments project VV, with the following cash flows: calculate the follwoing: a) Payback period b) Discounted payback period, assuming a 5% cost of capital. End of period cash flow $100,000 20,000 40,000 60,000 B • ooo $10,000 19,388