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3 - 2 4 . Your company is considering investing in three projects with projected Operating Income and Investment streams as shown in the following
Your company is considering investing in three projects with projected Operating Income and Investment streams as shown in the following table. Rank the three projects by ROI, IRR, DROI, and AOEROR assuming your investment opportunity rate is and using midperiod discounting. For calculating AOEROR use a common terminal point for all projects at the end of year a If your company only has $ million to invest in one of these projects and plenty of small projects that will return on average which project do you recommend? b If your company finds some more money and now has $ million to invest and plenty of small projects that will return on average which projects do you recommend? Year Project A Project B Oper Invest Oper Invest Inc Inc Project C Oper Invest Inc M$ M$ M$ M$ M$ M$ W
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