Which project should the management choose and why

Reference no: EM131201865

Practice questions:

Farmer George Tractors Ltd has £500,000 to invest. The net cash flows of two possible projects are as follows:

Year	Project 1	Project 2
	£	£
1	80,000	90,000
2	100,000	110,000
3	180,000	190,000
4	140,000	110,000
5	100,000	80,000

Which project should the management choose, and why?

Reference no: EM131201865

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