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You are running a company which has only $500,000 total to invest and are evaluating the following three projects: Project A: This project is expected
You are running a company which has only $500,000 total to invest and are evaluating the following three projects: Project A: This project is expected to return cash flows of $100,000 for six years and costs $400,000 to start today. Project B: This project costs $400,000 to launch today and is expected to return $700,000 in ten years, with no cash flows in the interim. Project C: This project costs $400,000 to launch today. It is expected to $35,000 a year for the next 30 years. Your firm's hurdle rate (discount rate) on all projects is 8% Which project/s should you choose! OB A&B A & O B&C All of them None of them
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