You are the manager of a medical testing lab and studying the cash flows of...
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Finance
You are the manager of a medical testing lab and studying the cash flows of two projects: project A involves buying new testing equipment today and project B involves hiring more technicians in the lab. The following table includes the cash flows of the 2 projects: Cash Flow stream End of year Project A Project B 1 $50,000 $10,000 2 $40,000 $20,000 3 $30,000 $30,000 4 $40,000 $40,000 5 $50,000 $50,000 Undiscounted Cash Flows $150,000 $150,000 a. Find the present value of each project using a 15% discount rate. b. Compare the calculated present values and discuss the difference between them because the undiscounted total is $150,000 for each. (5 points).
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