Project Cash Flows B -$11,000 -$25,000 1 $7,500 $14,500 $8,000 $18,000 3 $5,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 2BE
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Consider the following two mutually exclusive investment projects:

Which project would you select if you used the infinite planning horizon with
project repeatability likely (same costs and benefits) based on the PW criterion? Assume that i = 12%.

Project Cash Flows
B
-$11,000
-$25,000
1
$7,500
$14,500
$8,000
$18,000
3
$5,000
Transcribed Image Text:Project Cash Flows B -$11,000 -$25,000 1 $7,500 $14,500 $8,000 $18,000 3 $5,000
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