1. Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached 1a) Consider only projects A and B by examining the incremental...


1. Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow:
Image attached




1a)  Consider only projects A and B by examining the incremental project cash flows B- A. They are mutually exclusive opportunities. If the IRRB-A = 12% and the discount rate is 15% then what is your decision?



Pls show formula used.



Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent.


Use timeline if necessary. No excel .Thanks!



Project<br>Year 0<br>Year 1<br>Year 2<br>Year 3<br>Year 4<br>Year 5<br>A<br>-400<br>100<br>110<br>120<br>130<br>140<br>В-А<br>C<br>-200<br>100<br>100<br>100<br>100<br>100<br>D<br>-400<br>140<br>130<br>120<br>110<br>100<br>

Extracted text: Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 A -400 100 110 120 130 140 В-А C -200 100 100 100 100 100 D -400 140 130 120 110 100

Jun 11, 2022
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