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Q2: You want to make an investment with $200 million and you have three options available. Analyze these options by using capital budgeting techniques. Also
Q2: You want to make an investment with $200 million and you have three options available. Analyze these options by using capital budgeting techniques. Also assume that the standard payback period of the company is 2 years and the cost of capital is 7%. In case you are unable to take decision based upon these techniques, then you will have to use Modified Internal Rate of Return (MIRR) for your analysis. The estimated cash-flows are given below: Years A 350 540 150 180 100 Cash Flows B 150 350 300 200 300 C 210 650 (230) 480 290 3 4 5
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