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Category > Business & Finance Posted 30 May 2017 My Price 12.00

Oldguy Inc. is considering two independent investments

Oldguy Inc. is considering two independent investments with the following cash flow streams:

 

initial

Year 1

Year 2

Year 3

Year 4

Year 5

Proj A

-50,000

+20,000

+20,000

+10,000

+5,000

+5,000

Proj B

-50,000

+10,000

+10,000

+5,000

+5,000

+50,000

Oldguy uses a combination of NPV and Payback period to evaluate alternatives, with a requirement of a positive NPV using a 10% discount rate and a maximum payback of 3 years. Which project(s) should Oldguy select?

 

  a.

A and B

  b.

A only

  c.

neither A nor B

  d.

B only

Answers

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Status NEW Posted 30 May 2017 04:05 AM My Price 12.00

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