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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:

  1. Risk Adjusted Discount Rate RADR 5%
  2. 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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