Question
A company is considering three independent investment opportunities. The present value of future cash flows, initial investment, and net present value for each of the
A company is considering three independent investment opportunities. The present value of future cash flows, initial investment, and net present value for each of the projects are as follows:
| Project A | Project B | Project C | |
|---|---|---|---|
| Present value of future cash flows | $ 651,200 | $ 476,700 | $ 585,200 |
| Initial investment | 280,000 | 235,000 | 270,000 |
| Net present value | $ 371,200 | $ 241,700 | $ 315,200 |
In what order should the company prioritize investment in the projects?
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Accounting And Finance For Non Specialists
Authors: Eddie McLaney, Peter Atrill
8th Edition
9780273778165
