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Don was recently appointed as the CEO of Big Apple Development (BAD), a real estate developer in Perth. To build their legacy as the oldest

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Don was recently appointed as the CEO of Big Apple Development (BAD), a real estate developer in Perth. To build their legacy as the oldest serving CEO for BAD, they are considering making a long-term investment that will shape the local retirement housing market. They are presented with NPV profiles for two projects, as shown below. Both projects involve one initial cost and ten cash inflows. NPV Profiles for Projects A and B 60 40 20 25% 5% 10% 15% Annual Interest Rate NPV in Million $ O 0% -20 -40 -60 -80 -100 I Discuss which project they should take if their primary goal is to r project will last longer. (4 marks) Don was recently appointed as the CEO of Big Apple Development (BAD), a real estate developer in Perth. To build their legacy as the oldest serving CEO for BAD, they are considering making a long-term investment that will shape the local retirement housing market. They are presented with NPV profiles for two projects, as shown below. Both projects involve one initial cost and ten cash inflows. NPV Profiles for Projects A and B 60 40 20 25% 5% 10% 15% Annual Interest Rate NPV in Million $ O 0% -20 -40 -60 -80 -100 I Discuss which project they should take if their primary goal is to r project will last longer. (4 marks)

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