Which consist of an income figure plus depreciation

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Problem 1: A company is considering some major expenditures on capital equipment. Two types of equipment that it is considering are designated as Project A and Project B. The projects are independent (not mutually exclusive). The expected cash outlay for Project A is $180,000; while the expected cash outlay for Project B is $123,000. The firm's annual weighted-average cost of capital is 12%, a discount rate that applies to projects of average risk (such as proposed Projects A and B). Expected after-tax cash flows, which consist of an income figure plus depreciation added back, are as follows in an excel document

Reference no: EM132706929

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