Question
You have to choose between two projects as given below and you cannot repeat either project. Which project would you choose and why? Assume discount
You have to choose between two projects as given below and you cannot repeat either project. Which project would you choose and why? Assume discount rate at 20%.
| Investment ( mn .) | Cashflow in Year 2 | NPV ( mn .) | IRR | |
| Project A | 20 | 42 | 9.2 | 45% |
| Project B | 60 | 100 | 9.4 | 29% |
Would your answer change if either project could be repeated for two more years?
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
