Compute the net benefits using a discount rate

Reference no: EM13834214

Consider the following two projects. both have costs of $5,000 in year 1. Project 1 provides benefits of $2,000 in each of the first four years only. The second provides benefits of $2,000 for each of years 6 to 10 only. Compute the net benefits using a discount rate of 6 percent. Repeat using a discount rate of 12 percent. What can you conclude from the exercise

Reference no: EM13834214

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