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State which project you would recommend to Dreamon Corporation if ONE project can be selected (i.e. mutually exclusive). Give reason to support your decision.

State which project you would recommend to Dreamon Corporation if ONE project can be selected (i.e. mutually exclusive). Give reason to support your decision.

Essentials Of Investments
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
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(d)    State which project you would recommend to Dreamon Corporation if ONE project can be selected (i.e. mutually exclusive). Give reason to support your decision.       

Question 1: You are the Finance Manager of Dreamon Corporation. Two capital budgeting projects are to be evaluated. The investment cost of each project is $15,000 and the cost of capital for each project is 10%. Further information for the projects is as follows: Project A 9,700 8,500 5,500 Project B 5,200 5,200 5,200 Year 1 2 3
Transcribed Image Text:Question 1: You are the Finance Manager of Dreamon Corporation. Two capital budgeting projects are to be evaluated. The investment cost of each project is $15,000 and the cost of capital for each project is 10%. Further information for the projects is as follows: Project A 9,700 8,500 5,500 Project B 5,200 5,200 5,200 Year 1 2 3
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