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E-solutions is a Greek company that has 770 million of cash resources available at t0. It has identified three investment projects, as follows (all values

E-solutions is a Greek company that has 770 million of cash resources available at t0. It has identified three investment projects, as follows (all values in millions):

Project A B C

Outlay at t0 270 300 200

Inflow at t1 340 350 230

Assume that all projects exhibit constant returns to scale. If the market interest rate moved to 20% and 10% then which project will be accepted?

At 10% which project will be accepted?

Answer 1 Choose...

B and C

All of them

None of them

A only

A and B

A and C

C Only

B Only

At 20% which project will be accepted?

Answer 2 Choose..

B and C

All of them

None of them

A only

A and B

A and C

C Only

B Only

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