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2. The company has two investment projects, which have the following characteristics given below End of Year Project A Project B 0 S1.600 $1.600 1

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2. The company has two investment projects, which have the following characteristics given below End of Year Project A Project B 0 S1.600 $1.600 1 S1.000 $400 2 $750 S600 3 $400 S1.150 NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. a) Compute the Fisher's rate between the Project A and Project B. (10p) b) Which project is the best for the firm if the discount rate%22(5p) c) If the firm value 59.800 before Project A how much will it be after the Project? (10p) (Assumption: discount rate for project is 796) acer F F10 FA de F11 GD F12 Sark P125 Sysra Pau Break & ? ) 9 8 [ ] } Y U O P H J K L

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