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11. You are a senior manager at Poeing Aircraft and have been authorized to spend up to $400,000 for projects. The three projects you are

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11. You are a senior manager at Poeing Aircraft and have been authorized to spend up to $400,000 for projects. The three projects you are considering have the following characteristics: Project A: Initial investment of $280,000. Cash flow of S190,000 at year 1 and $170,000 at year 2. This is a plant expansion project, where the required rate of return is 10 percent. Project B Initial investment of $390,000. Cash flow of $270,000 at year 1 and $240,000 at year 2. This is a new product development project. where the required rate of return is 20 percent. Initial investment of $230,000. Cash flow of $160,000 at year I and $190.000 at year 2. This is a market expansion project, where the required rate of return is 15 percent. Project C: Assume the corporate discount rate is 10 percent. Please offer your recommendations, backed by your analysis(write down your analysis steps and details, for the IRR you only need to give the equation) (40 points) C Implications Payback IRR Pi NPV enk ) ( (AX4) of the major monetary powers-the United States, the Un Italy-met atto decide on the framework for a Kingdom, France, West Germany, lapan, and monetary system. This meeting was the first of what would the Group of Seven(G) major Industrial powers A Rambouilet, r 8. London, United Kingdom c. Bonn, West Germany D. Tokyo, Japan 4 The Canadlian Foreign Invest to screen virtually tment Review Act of 1972 established the direct forejgn investment in Canada of Economy, Trade, and Industry (METI) Investment Review Agency (FIRA) ee on Foreign investment in the A. Ministry B. Foreign C Committ nvestment in the United States (CFIUus) D. Center on (CTC) s NOT a subsidlary of World Bank Group. nal Finance Corporation (IFC) . International Development Agency (IDA) Bank Multilateral Investment Guarantee Agency (MIGA) nfronted with the South's persistence and growing unity plus its increasing numerical co al Assembly, the North agreed to convene a eneral Agreements on Trade and Tariffs (GATT) tenational Trade Organization (ITO) which was held in 1964. neralized System of Preferences (GSP) ted Nations Conference on Trade and Development (UNCTAD) anization called a report in 1997 after a visit to the Vietnamese plants uncovered evidence of vic formed to investigate reports about Nike shoe operation 11. You are a senior manager at Poeing Aircraft and have been authorized to spend up to $400,000 for projects. The three projects you are considering have the following characteristics: Project A: Initial investment of $280,000. Cash flow of S190,000 at year 1 and $170,000 at year 2. This is a plant expansion project, where the required rate of return is 10 percent. Project B Initial investment of $390,000. Cash flow of $270,000 at year 1 and $240,000 at year 2. This is a new product development project. where the required rate of return is 20 percent. Initial investment of $230,000. Cash flow of $160,000 at year I and $190.000 at year 2. This is a market expansion project, where the required rate of return is 15 percent. Project C: Assume the corporate discount rate is 10 percent. Please offer your recommendations, backed by your analysis(write down your analysis steps and details, for the IRR you only need to give the equation) (40 points) C Implications Payback IRR Pi NPV enk ) ( (AX4) of the major monetary powers-the United States, the Un Italy-met atto decide on the framework for a Kingdom, France, West Germany, lapan, and monetary system. This meeting was the first of what would the Group of Seven(G) major Industrial powers A Rambouilet, r 8. London, United Kingdom c. Bonn, West Germany D. Tokyo, Japan 4 The Canadlian Foreign Invest to screen virtually tment Review Act of 1972 established the direct forejgn investment in Canada of Economy, Trade, and Industry (METI) Investment Review Agency (FIRA) ee on Foreign investment in the A. Ministry B. Foreign C Committ nvestment in the United States (CFIUus) D. Center on (CTC) s NOT a subsidlary of World Bank Group. nal Finance Corporation (IFC) . International Development Agency (IDA) Bank Multilateral Investment Guarantee Agency (MIGA) nfronted with the South's persistence and growing unity plus its increasing numerical co al Assembly, the North agreed to convene a eneral Agreements on Trade and Tariffs (GATT) tenational Trade Organization (ITO) which was held in 1964. neralized System of Preferences (GSP) ted Nations Conference on Trade and Development (UNCTAD) anization called a report in 1997 after a visit to the Vietnamese plants uncovered evidence of vic formed to investigate reports about Nike shoe operation

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