Jigger Ltd is considering two alternative projects; each of which will involve an initial outlay of £600,000. Both will have a four-year life and are expected to yield the following cash inflows:
Which of the following is not true?
Definitions:
Nondurable Goods
Items that are consumed or are only useable for a short period before they need replacement due to wear or consumption.
Services
Tasks or activities performed by individuals or companies for the benefit of others, typically in exchange for payment, and are intangible in nature.
Disposable Income
Funding available to households for their spending and saving plans post income tax cuts.
Savings
The portion of income that is not spent on consumption but set aside for future use, often in a bank account or investment vehicle.
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