Question
You are a financial manager at your firm and you have been tasked with evaluating a potential investment. This project has a one-year time horizon.
You are a financial manager at your firm and you have been tasked with evaluating a potential investment. This project has a one-year time horizon. If the decision is made to invest in this project, it will generate a positive cash flow to the firm of $27.5 million one year from now. - The prevailing interest rate available to the firm for borrowing/lending is 6.8%. - What is the MOST that your firm should be willing to pay today to invest in this project in order to generate positive value (such that Benefits Costs > 0). Choose the most appropriate response.
$27.5 million
$29.4 million
$16.4 million
$25.7 million
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