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Question 2 An investor from Far East has heard about the diverse business opporiunities existing in the country. He has three options in mind hereafter
Question 2 An investor from Far East has heard about the diverse business opporiunities existing in the country. He has three options in mind hereafter referred to option D, E and option F. The investor has brought with him project documents of the three projects. While option D comprises of developing a supermarket in Kawe, option E requires building a coal power plant near Kiwira coal mines in Mbeya. This option is about electrical generation. The electricity will be sold to TANESCO. The investor has also heard about the transport problem in DSM city. He wants to construct a railway line to link key areas of the city beset by transport problems. He has three major routes namely, Mbagala, Kimara and the Mbezi beach routes. This is option F. You own a company and one of your activities is appraisal of projects. The investor has approached you for advice. The extracted information from the documents is oiven next. Using an IRR method which project is worth pursuing
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