Diamantis Masoutis S.A. is considering the following 10-year projects. Comment on the acceptability of each project. Assume

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Diamantis Masoutis S.A. is considering the following 10-year projects. Comment on the acceptability of each project. Assume that the firm has a cost of capital of 5%.

a. Initial investment is €1,000,000; cash inflows are €100,000 per year.

b. Initial investment is €2,000,000; cash inflows are €250,000 per year.

c. Initial investment is €2,500,000; cash inflows are €400,000 per year.

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Principles Of Managerial Finance Brief

ISBN: 9781292267142

8th Global Edition

Authors: Chad J. Zutter, Scott B. Smart

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