The Cash Flows for Four Projects Are Shown Below, Along

question 49

Multiple Choice

The cash flows for four projects are shown below, along with the cost of capital for these projects. If these projects are mutually exclusive, which one should be taken?

• A)Year: 0 1 2 3 4 5 Cash flow: -$20,000 $6000 $6000 $6000 $6000 $6000
• Cost of Capital: 8.2%
• B)Year: 0 1 2 3 4 5 Cash flow: -$15,000 $4000 $4000 $4000 $4000 $4000
• Cost of Capital: 7.0%
• C)Year: 0 1 2 3 4 5 Cash flow: -$18,000 $5000 $5000 $5000 $5000 $5000
• Cost of Capital: 7.6%
• D)Year: 0 1 2 3 4 5 Cash flow: -$12,000 $4000 $4000 $4000 $4000 $4000
• Cost of Capital: 5.0%

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