t-use-at-least-two-capital-budgeting-methods-accounting-homework-help
A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. The company has a cost of capital of 12%. Which should the company do and why? You must use at least two capital budgeting methods. Show your work.
Year |
A |
B |
C |
0 |
-350 |
-250 |
-250 |
1 |
100 |
-50 |
100 |
2 |
100 |
100 |
100 |
3 |
100 |
100 |
100 |
4 |
100 |
100 |
100 |
5 |
100 |
100 |
100 |
6 |
50 |
100 |
100 |
7 |
-200 |
-200 |
0 |