Considering two mutually exclusive projects

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Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs $75,000 and is expected to generate incomes of $48,000 at the end of year one and $45,000 at the end of year two. Project B costs $80,000 and is expected to generate incomes of $34,000 at the end of year one, $37,000 at the end of year two, $26,000 at the end of year three, and $25,000 at the end of year four. Zellars, Inc.'s required rate of return for these projects is 10%. The net present value for Project A is:

Reference no: EM13943443

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Considering two mutually exclusive projects : Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs $75,000 and is expected to generate incomes of $48,000 at the end of year one and $45,000 at the end of year two. Project B costs $80,000 and is expected to genera..

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