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A company is considering a project involving an investment of 200,000 Rials now (year 0) in return of 75,000 Rials/year during 3 years (year 1-3).

A company is considering a project involving an investment of 200,000 Rials now (year 0) in return of 75,000 Rials/year during 3 years (year 1-3). a. What discount rate will make this project acceptable? (5 marks] b. What is the minimum return/year for this project to be profitable considering 10% discount rate? [5 marks] Paragraph 4 BIEE

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