Bruin, Ic., has identified the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) -$28,100 13,500 11,400 8,750 4,650 (B) -$28,100 3,850 9,350 14,300 15,900 4 o-23
Bruin, Ic., has identified the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) -$28,100 13,500 11,400 8,750 4,650 (B) -$28,100 3,850 9,350 14,300 15,900 4 o-23
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
Section: Chapter Questions
Problem 1PS
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100%
10B

Transcribed Image Text:b-1lf the required return is 12 percent, what is the NPV for each of these
projects? (Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Project A
Project B
b-
Which project will the company choose if it applies the NPV decision rule?
O Project A
O Project B

Transcribed Image Text:Bruin, Inc., has identified the following two mutually exclusive projects:
Cash Flow
Cash Flow
Year
(A)
-$28,100
13,500
11,400
8,750
4,650
(B)
-$28,100
3,850
9,350
14,300
15,900
-23 4
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