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Expansion Projects Assignment | Homework For You

1. Suppose that a company considers two alternative expansion projects. The first project requires initial outlay of – $100,000; and the second project costs less: Crow $7,000. Subsequent incremental cash flows from the more expensive project will be $60,000 for 5 years. The cash flows from the second alternative will be lower: S4,000 for 3 years. Which expansion project would you recommend the company undertakes and why? Get Finance homework help todayHomework For You

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