Solution-Which project should marlin accept

Which project should marlin accept

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Reference no: EM13517051

Marlin Corporation must decide between two mutually exclusive projects because it lacks sufficient employees to complete both projects. Each project will take two years to complete and the project selected will be Marlin's only source of taxable income for the two years. The first job would generate $360,000 of revenues in the first year and $80,000 in the second year. Marlin estimates that this job will incur $200,000 of expenses in the first year and $40,000 of expenses in the second year.

The second job will generate $220,000 of revenues and $120,000 of expenses in each of the two years. Assuming a 7 percent discount rate, which project should Marlin accept?

Reference no: EM13517051

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Which project should marlin accept

Reference no: EM13517051

Reference no: EM13517051

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