Solution-Explain which of the two projects the firm should

Explain which of the two projects the firm should accept

Reference no: EM131016723

A firm must choose from one of two proposed projects presented below. The farm's cost of capital is 11.25%. Using the NPV method explain which of the two projects the firm should accept with an initial investment of initial investment = $185000

Year	Project A	Project B	PVA	PVB
Year 1	50,000	15,000
Year 2	66,000	17,000
Year 3	45,000	25,000
Year 4	35,000	75,000
Year 5	25,000	70,000
Year 6	20,000	45,000

Reference no: EM131016723

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Explain which of the two projects the firm should accept

Reference no: EM131016723

Reference no: EM131016723

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