Question
Link3 Technologies is faced with two independent investment opportunities. The company uses the discounted payback method to assess potential projects and utilizes a discount rate
Link3 Technologies is faced with two independent investment opportunities. The company uses the discounted payback method to assess potential projects and utilizes a discount rate of 12 percent. The cash flows for the two projects are:
| Year | Project A | Project B |
| 0 | -$100,000 | -$75,000 |
| 1 | 50,000 | 50,000 |
| 2 | 50,000 | 75,000 |
| 3 | 55,000 | 40,000 |
| 4 | 20,000 | 0 |
Which investment project should the company go for? Please work out problem step by step to able to do on paper on my own.
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Computational Finance Using C And C #
Authors: George Levy DPhil University Of Oxford
1st Edition
0750669195, 978-0750669191
