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Which of the following two projects (A or B) would you select (assume only one can be undertaken). HINT: Assume that the cashflows are earned
Which of the following two projects (A or B) would you select (assume only one can be undertaken). HINT: Assume that the cashflows are earned at the end of the year. Show your reasoning: A Capex required Year 0 13 000 000 Annual Cash Flow 2 900 000 No of years of Cash Flow 12 Wacc 18% B Capex required Year 0 26 000 000 Annual Cash Flow 5 200 000 No of years of Cash Flow 15 Wacc 18%
Which of the following two projects (A or B) would you select (assume only one can be undertaken).
HINT: Assume that the cashflows are earned at the end of the year.
Show your reasoning:
A
Capex required Year 0 13 000 000
Annual Cash Flow 2 900 000
No of years of Cash Flow 12
Wacc 18%
B
Capex required Year 0 26 000 000
Annual Cash Flow 5 200 000
No of years of Cash Flow 15
Wacc 18%
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