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4. You work for the 3T company, which expects to earn at least 18 percent on its investments. You have to choose between two similar
4. You work for the 3T company, which expects to earn at least 18 percent on its investments. You have to choose between two similar projects. The following chart shows the cash information for each project. Which of the two projects would you fund if the decision is based only on financial information? Why? Page 53 Omega Year Alpha Year Inflow Outflow Netflow Inflow Outflow Netflow YO 0 $225,000 -225,000 YO 0 0 $ 50,000 150,000 -300,000 -50,000 -190,000 Y1 150,000 Y2 $300,000 100,000 0. $ 150,000 150,000 220,000 250,000 50,000 200,000 215,000 250,000 0 250,000 190,000 0 30,000 0 30,000 0 30,000 505,000 205,000 200,000 50,000 150,000 190,000 Y3 215,000 Y4 175,000 Y5 197,000 Y6 70,000 Y7 582,000 Total 197,000 180,000 180,000 100,000 1,087,000 120,000 1,200,000 0 30,000 530,000 90,000 670,000 Total
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