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Big Shot Market is considering two investment projects:

Project A Project B

Initial Cost 250,000 200,000

Number of Periods 5 5

Yearly Net Cash Flow 75,000 60,000

Cost of Capital (WACC) 5% 5%


a) Compute net present value of both projects

b) Should Big Shot invest?

c) Which project should they choose?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M938119

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