Question
1. Which project do you think is riskier? How do you think you should incorporate differences in risk into your analysis? 2. Based on the
1. Which project do you think is riskier? How do you think you should incorporate differences in risk into your analysis?
2. Based on the calculated payback period, net present value (NPV), and internal rate of return (IRR) for each project, which project looks better for New Balance shareholders? Why?
3. Should Rodriguez be critical of cash flow forecasts for Persistence than of cash flow forecasts for Sneaker 2013? Why? 4. What is your final recommendation to Rodriguez?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
8th Edition
0324258917, 9780324258912
