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Bita overseas company is working on expansion decision , assume that the company is having 3 different alternatives of investment , to invest in plant

Bita overseas company is working on expansion decision , assume that the company is having 3 different alternatives of investment , to invest in plant A , the cost of initial investment (outflow) is $100000 and the expected returns (inflow ) $ 40000 per year for 4 years that are shown in the table below , OR to invest in plant B , the cost of initial investment (outflow) is $200000 and the expected returns (inflow ) $ 50000 per year for 4 years , OR to invest in plant C , the cost of initial investment (outflow) is $150000 and the expected returns (inflow ) $ 35000 per year for 4 years that are shown in the table below that are shown in the table below.......(3 marks)

REQUIRED

Which ALTERNATE would the management choose. Giving the following table:

Year

Plant A

Plant B

Plant C

Investments

100,000

200,000

150,000

1

40000

50000

35000

2

40000

50000

35000

3

40000

50000

35000

4

40000

50000

35000

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