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A managerof Safola Co. ask your advice to evaluate 3 projects, consider the following information to determine the project the manager should be select
A managerof "Safola Co. " ask your advice to evaluate 3 projects, consider the following information to determine the project the manager should be select by the following criteria's:
- Risk Adjusted Discount Rate RADR 5%
- 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.
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