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1) A company is seeking to invest approximately $120 millions in new projects. After research three projects are considered candidates for construction. The after tax
1) A company is seeking to invest approximately $120 millions in new projects. After research three projects are considered candidates for construction. The after tax cash non- discounted cash flow information for the three projects using a ten years operating life is, Initial Investmen After tax cash flow (millions) years 1-10 Project A Project B Proiect C $60 $110 $80 $18 S22 S15 Assume land, working capital and salvage equal to zero. Initial investment at time zero and yearly cash flow at end of the 10 year plant operation Draw the three cash flows and calculate the important points for all. Hint: use cumulative cash, interest, and payback period
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