Question
15. Ragab Co. has two projects (A) and (B), the initial cost for project (A) is $50,000 and for project (B) is $40,000, if the
15. Ragab Co. has two projects (A) and (B), the initial cost for project (A) is $50,000 and for project (B) is $40,000, if the required rate of return is 10% and the expected cash flows for each project are as follows:
Project (A) project (B)
C1 $40,000 $25,000
C2 $10,000 $5,000
C3 $15,000 $15,000
Which project should Ragab co. undertake according to payback period, NPV and IRR techniques?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
