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Ponsford Ltd Is Evaluating Two Projects,A and B

Question 25

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Ponsford Ltd is evaluating two projects,A and B.The relevant cash flows for each project are set out below.Both projects are similar in risk and their applicable cost of capital is 12%. Ponsford Ltd is evaluating two projects,A and B.The relevant cash flows for each project are set out below.Both projects are similar in risk and their applicable cost of capital is 12%.   Which project should Ponsford Ltd chose? Which project should Ponsford Ltd chose?

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Project Q
NPV ProjQ = $30,000(PV if 12%,...

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