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A manager of Safola Co. ask your advice to evaluate 4 projects, consider the following information to determine the project the manager should be select
- A manager of Safola Co. ask your advice to evaluate 4 projects, consider the following information to determine the project the manager should be select by the following criterias:
- Risk Adjusted Discount Rate 5% RADR
- Equivalent Certainty Factor CF
Projects | A | B | C |
Cost | 100000 | 150000 | 200000 |
Expected of cash inflows | 20000 | 25000 | 30000 |
Life( years) | 7 | 9 | 10 |
Level of risk ( c.v) | 0.24 | 0.34 | 0.18 |
Safola Co. usually uses the following discount rates 10%, 7%, 12%, and certainty factors 0.633, 0.742, 0.543.
please need the details with Excel
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