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You are a project manager for your company and you are faced with six potential projects that you can invest in Free cash flow projections
You are a project manager for your company and you are faced with six potential projects that you can invest in Free cash flow projections and additional relevant data are given for each project in the table below. Assume that there are no cash flows after year 3. Assume that you can only take each project once and that you can only choose one project. Which project would you invest in? Select the best answer RR Project Project A Project B Project Project D Project Project FCF Forecasts by Year (in $1,000) Interest Rate 0 1 2 3 (EAR) (480) (20) 270 420 10% (420) 430 50 0 10% (350) 80 120 200 10% (4001 (50) 150 19 (490) 230 240 200 18 (200) 260 0 18% 13.45 12.9% 50 13 6N 17 94 30 ON Payback Period 3 Years 1 Year 3 Years 3 Years 3 Years 1 Year 480 O Project A O Project B Project C IV. Project O v Projecte V Project LLLLLLL
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