Question
A company has the following three mutually exclusive investment projects available this year. The firm's cost of capital is 12 %. Project A B C
A company has the following three mutually exclusive investment projects available this year.
The firm's cost of capital is 12 %.
| Project | A | B | C |
| Initial Investment | $40,000 | $30,000 | $51,000 |
| Year 1 CF | $17,000 | $15,000 | $12,000 |
| Year 2 CF | $16,000 | $14,000 | $13,000 |
| Year 3 CF | $12,000 | $13,000 | $14,000 |
| Year 4 CF | $12,000 | $12,000 | $15,000 |
Which of the project they should invest in given that the company does not have any problems in raising any amount of capital?
| A, B and C |
| A |
| B |
| A and C |
| A and B |
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Technical Analysis The Complete Resource For Financial Market Technicians
Authors: Charles Kirkpatrick, Julie Dahlquist
3rd Edition
0134137043, 978-0134137049
