| The CEO of a computer resale business is expanding. She is presented with two options. Under Proposal A, the estimated investment for the expansion project is $85,000, and it is expected to produce after-tax cash flows of $25,000 for each of the next 6 years. Proposal B involves an investment of $32,000 and after-tax cash flows of $10,000 for each of the next 6 years. Between which two desired rates of return will the CEO be indifferent to either proposal? |
the answer is A
i want to get with simple way how he reach to this answer
thank you in advance to all
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Sameh Mahmoud Ismail
Accountant
Giza
Egypt
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