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A small business owner must decide between spending $10,000 on only one of two possible expansion projects. Project One yields $10,700 in revenues one year
A small business owner must decide between spending $10,000 on only one of two possible expansion projects. Project One yields $10,700 in revenues one year in the future.Project Two yields $12,200 revenues two years in the future. The interest rate is 10% per year (there is no inflation).The owner should
a.choose Project One
b.choose Project Two
c.choose either project, it doesn't matter because both have the same net return
d.choose neither project, because both projects yield negative net returns
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