Agritex is considering building either a one-storey (Project A) or five-storey (Project B) block of offices on a prime site. The following information is available:
Initial Investment Outlay
Net Inflow at the Year End
Project A
-9,500
11,500
Project B
-15,000
18,000
Assume k = 10%, which project should Agritex undertake?
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Answer:
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Explanation:
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