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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?
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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