question archive ABC Company is considering two investments both of which cost $10,000
Subject:BusinessPrice:2.87 Bought7
ABC Company is considering two investments both of which cost $10,000.
The cash flows are as follows:
Year Project A Project B
1 $6,000 $5,000
2. 4,000 3,000
3. 3,000 8,000
Based on the net present value method, assuming a cost of capital of 10%, which of the two projects should be chosen?
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