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    Assessing Present Value

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    Suppose the following two proposals were being considered. Find the Present Value of the proposed project. Select the project you would choose. Explain what other considerations you think are important when choosing one project over another.

    Suppose the first project expects to receive $25,000 in 110 days, and the opportunity cost of capital, i, annually is 6%, or 0.06.

    From the second project, the company expects to receive $45,000 in 150 days and the opportunity cost of capital, i, annually is 5%, or 0.05.

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    Dear Student,

    Please find help and some guidelines for assessing present value in the attached file. The content in the file has been written to ...

    Solution Summary

    This solution assesses a present value.