Question
You have been presented with two potential projects. You have enough money to do both if you like. Project #1 requires an investment of $1,000
You have been presented with two potential projects. You have enough money to do both if you like. Project #1 requires an investment of $1,000 today and is expected to provide a single cash flow of $1,200 in one year. Project #2 requires an investment of $2,000 today and is expected to provide a single cash flow of $2,600 in three years. Unfortunately, youre not exactly sure what the required return isit could be as low as 10%, as high as 15%, or anything in between. What should you do? Select the best answer.
Invest in both projects.
Invest only in Project #1.
Invest only in Project #2.
Invest in neither project.
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