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  3. year project a project b initial cost 30000 30000 t1...

Question: year project a project b initial cost 30000 30000 t1...

Question details

Year

Project A

Project B

Initial Cost

($30,000)

($30,000)

 

 

 

T1

$1000

$12,000

T2

$15,000

$12,000

T3

$15,000

$12,000

T4

$15,000

$25,000

T5

$30,000

 

T6

 

 

 

Assume a required rate of return of 10% pa.

a)     Which project would your company choose?

b)     If you could only choose one project, which project would you recommend?

 

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