Question
a) What is the value of a 15 year Project that pays $30 every 6 months and is yielding 8%? (b) Jack Has three projects
a) What is the value of a 15 year Project that pays $30 every 6 months and is yielding 8%?
(b) Jack Has three projects in hand but he is quite confused among the three . He has BDT 500000 available to invest today. The Cost of capital or discount rate is 7%.The cash for the projects are provided below
Project A : It will give a return of 40000, 60000,80000, 93000, 70000, 87000, 85000,56780 TK for year 1,2,3,4,5,6,7,8 respectively.
Project B: It will give a return of 30000 for coming 20 years
Project C: It will give a return of 2500 TK (at the beginning of each month) for upcoming 28 years on a monthly basis.
Advice Jack which project should be invested on and why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started