Which investment to accept Dayton Company has $15,000 to invest It is trying to decide between two a

Which investment to accept

Dayton Company has $15,000 to invest It is trying to decide
between two alternative uses of the funds The alternatives are:

Project A Project
B

Investment required $15,000 $15,000

Annual cash flows 4,000 –

Singe cash flow at the end of 0f 10 years – 60,000

Project life 10
years 10 years

Dayton’s cost of capital of 16%

Which investment would you recommend the Company accept?