StrayT Line has potential new projects which provide the following cash flows: 3 0 Project A -18,000 Project B -20,000 Project C -8.000 O Accept Project A & B Accept Project A Accept Project C 4,000 12,000 O Accept Project A & C O Accept Project B O Accept none of the projects 3,000 1 4,000 6,000 3,000 2 4,000 4,000 3,000 4,000 0 Which project(s), if any, should StrayT Line accept if its cost of capital is 13.5%? 3,000 4

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6EB: The management of Ryland International Is considering Investing in a new facility and the following...
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StrayT Line has potential new projects which provide the following cash flows:
2
3
0
Project A -18,000
Project B 20,000
Project C -8.000
4,000
O Accept Project A & B
Accept Project A
O Accept Project C
O Accept Project A & C
O Accept Project B
O Accept none of the projects i
12,000
3,000
1
4,000
6,000
3,000
4,000
4,000
3,000
4,000
0
3,000
Which project(s), if any, should StrayT Line accept if its cost of capital is 13.5%?
Transcribed Image Text:StrayT Line has potential new projects which provide the following cash flows: 2 3 0 Project A -18,000 Project B 20,000 Project C -8.000 4,000 O Accept Project A & B Accept Project A O Accept Project C O Accept Project A & C O Accept Project B O Accept none of the projects i 12,000 3,000 1 4,000 6,000 3,000 4,000 4,000 3,000 4,000 0 3,000 Which project(s), if any, should StrayT Line accept if its cost of capital is 13.5%?
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