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Project X Project Y Initial investment (CF,) $980,000 $363,000 Year (t) Cash inflows (CF,) 1 $150,000 $110,000 170,000 98,000 3 220,000 93,000 4 270,000 82,000 5 340,000 67,000

Project X Project Y Initial investment (CF,) $980,000 $363,000 Year (t) Cash inflows (CF,) 1 $150,000 $110,000 170,000 98,000 3 220,000 93,000 4 270,000 82,000 5 340,000 67,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Ocean Pacific Restaurant is evaluating two mutually exclusive projects for expanding the restaurant’s seating capacity. The relevant cash flows for the projects are shown in the following The firm’s cost of capital is 4%. Assess the acceptability of each project on the basis of the IRRs found in part

Project X Project Y Initial investment (CF,) $980,000 $363,000 Year (t) Cash inflows (CF,) 1 $150,000 $110,000 2 170,000 98,000 3 220,000 93,000 4 270,000 82,000 5 340,000 67,000
Transcribed Image Text:Project X Project Y Initial investment (CF,) $980,000 $363,000 Year (t) Cash inflows (CF,) 1 $150,000 $110,000 2 170,000 98,000 3 220,000 93,000 4 270,000 82,000 5 340,000 67,000
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