#3 Year Project A Project B 0 -$20,000 -$23,000 1 15,200 14,300 23 5,900 2,100 8,100 7,100 Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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#3
HE
Year
Project A
Project B
0
-$20,000
-$23,000
1
2
3
15,200
5,900
2,100
14,300
8.100
7,100
Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount
rate is 15 percent?
Transcribed Image Text:#3 HE Year Project A Project B 0 -$20,000 -$23,000 1 2 3 15,200 5,900 2,100 14,300 8.100 7,100 Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?
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