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2 You have two projects in Switzerland to choose from that have different risks and different lives. The shorter term project is higher risk and

2 You have two projects in Switzerland to choose from that have different risks and different lives. The shorter term project is higher risk and the longer term project is lower risk. You expect to generate the cash flows as per the table below. You discount your high risk projects at 10% and lower risk ones at 7.5%. Which project do you invest in?

Time

0

1

2

3

4

5

Charlotte

-250

70

90

100

-

-

Eva

-300

70

80

80

90

90

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