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The treasurer of Amaro Canned Fruits, INC., has projected the cash flows of projects A, B, and C as follows Year Project A Project B
- The treasurer of Amaro Canned Fruits, INC., has projected the cash flows of projects A, B, and C as follows
| Year | Project A | Project B | Project C |
| 0 | -100,000 | -200,000 | -150,000 |
| 1 | 60,000 | 130,000 | 110,000 |
| 2 | 60,000 | 130,000 | 110,000 |
Suppose the cost of capital is 10 percent and Amaros budget for these projects is $ 300,000. The projects are not divisible. Which project(s) should Amaro accept?
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Principles Of Commercial Real Estate Finance
Authors: Gail Ramshaw, Mortgage Bank
1st Edition
0793157099, 9780793157099
