6 You only have enough budget to invest in one project If your required rate of return is 12 , which project should you invest in The cashflows for Projects A and B are below Project A Year Cash Flow 0 $150,000 1 $200,000 2 $125,000 3 $75,000 Project B Year Cash Flow 0 $225,000 1 $100,000 2 $150,000 34 $150,000 5 $175,000 $215,000

Question

6  You only have enough budget to invest in one project  If your required rate of return is 12 , which project should you invest in  The cashflows for Projects A and B are below  Project A Year Cash Flow 0  $150,000 1 $200,000 2 $125,000 3 $75,000 Project B Year Cash Flow 0  $225,000 1 $100,000 2 $150,000 34 $150,000 5 $175,000 $215,000

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Question

6: You only have enough budget to invest in one project. If your required rate of return is 12%, which project should you invest in?

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