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A Company has three potential projects in which to invest. The cash flows for each project are shown in the table below. The risk-free interest
A Company has three potential projects in which to invest. The cash flows for each project are shown in the table below. The risk-free interest rate is 15%. If the company has limited resources in what order should it accept and undertake the projects? Show all workings and explain your reasoning.
Project | cash flow year1 | cash flow year2 | cash flow year3 |
A | 90 | -60 | 120 |
B | -90 | 40 | 30 |
C | 90 | 0 | 70 |
You can attach your working for this question below OR attach all your Section C answers to the end of the test
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