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The Roger Company has the choice between two different types of die. One type cost less, but it also has a shorter life expectancy. the expected cash flows after taxes for the two diferent dies are as follows:

Period    0             1              2             3                4

A             (10000)      8000        8000

B             (12000)      5000        5000         5000           5000

The hurdle rate for this project is 10 percent.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92869991

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