Question
1.You are a finance manager of a company. You have a choice among three potential projects with the following cash flow (in EUR). Year 1
1.You are a finance manager of a company. You have a choice among three potential projects with the following cash flow (in EUR).
| Year | 1 | 2 | 3 |
| Project A | 4000 | 4000 | 4000 |
| Project B | 4000 | 3000 | 5000 |
| Project C | 5000 | 4000 | 3000 |
Assuming the interest rate being 4.45%, which project do you choose and why?
2.In Question 1, if the interest rate for the third year changed to 3%, which project do you choose and why?
3.Comparing the settings of Questions 1 and 2, which one do you think is closer to the real world and why?
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Capital Market Finance
Authors: Patrice Poncet, Roland Portait, Igor Toder
1st Edition
3030845982, 978-3030845988
