Question
GE has the following two projects that it is considering; it can choose only one. Project A has an investment outlay/expense today of $9.7M, and
GE has the following two projects that it is considering; it can choose only one. Project A has an investment outlay/expense today of $9.7M, and its cash flows over the next three years are $4.1M, $4.1M, and $4.9M. Project B has an outlay of $9.7M, and cash flows of $0M, $0M, and $13.9M. Which project should GE choose if the cost of capital for similar projects is 4.50%?
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
