Saturday, March 5, 2011

I need help with capital decision matrix, an assignment that i have to do, please help?

What you're being asked to do is determine which project has the highest return. Calculate the PV of the additional cash flows resulting from each project (use the PV of an annuity formula), then subtract the cost of implementing the project. Whichever project has the highest net value is the one you'd pick.

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