1. Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached 1a) Consider only projects A and B by examining the incremental project cash flows B- A. They are mutually exclusive opportunities. If the IRRB-A = 12% and the discount rate is 15% then what is your decision? Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks!
1. Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached 1a) Consider only projects A and B by examining the incremental project cash flows B- A. They are mutually exclusive opportunities. If the IRRB-A = 12% and the discount rate is 15% then what is your decision? Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks!
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1. Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached
1a) Consider only projects A and B by examining the incremental project cash flows B- A. They are mutually exclusive opportunities. If the IRRB-A = 12% and the discount rate is 15% then what is your decision?
Pls show formula used.
Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent.
Use timeline if necessary. No excel .Thanks!
![Project
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
A
-400
100
110
120
130
140
В-А
C
-200
100
100
100
100
100
D
-400
140
130
120
110
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c1c175a-8ac6-4422-9d6c-ac29aac9f790%2F6abd91c9-5d70-48a1-893a-d3ff9973b3df%2F4oowezw_processed.png&w=3840&q=75)
Transcribed Image Text:Project
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
A
-400
100
110
120
130
140
В-А
C
-200
100
100
100
100
100
D
-400
140
130
120
110
100
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