Year |
Cash Flow S |
Cash Flow L |
0 |
-$60,000 |
-$115,000 |
1 |
38,000 |
28,500 |
2 |
25,000 |
49,500 |
3 |
35,000 |
26,850 |
4 |
22,600 |
|
5 |
18,750 |
|
6 |
23,500 |
The required rate of return on these projects is 14-percent. What decision should be made (i.e., which project should be accepted, if indeed any project should be accepted?
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