Determine which investment is preferable

Reference no: EM131975277

Question: A firm is considering the following mutually exclusive project. project A requires an initial outlay of $500 and will return $120 per year for the next 7 years. project B requires an initial outlay of $5000 and will return $1350 per year for the next 5 hears. The required rate of return is 10%. Use the net present value to determine which investment is preferable?

Reference no: EM131975277

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