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You work for the 3T company, which expects ti earn at least 18 percent on its investments. You have to choose between two similar projects.
You work for the 3T company, which expects ti earn at least 18 percent on its investments. You have to choose between two similar projects. Which if the two projects would you fund if the decision is based only on finacial informagion? Why?
Chapter 2 Organization Strategy and Project Selection 53 Omega Year Alpha Year YO Outflow $225,000 190,000 YO Outflow $300,000 100,000 Y1 Y1 Y2 Y2 Y3 Inflow O 0 $ 150,000 220,000 215,000 205,000 197,000 100,000 1,087,000 30,000 Netflow -225,000 -190,000 150,000 190,000 215,000 175,000 197,000 70,000 582,000 Inflow 0 $50,000 150,000 250,000 250,000 200,000 180,000 120,000 1,200,000 50,000 Netflow -300,000 -50,000 150,000 200,000 250,000 150,000 180,000 90,000 670,000 30,000 Y5 50,000 Y6 Y6 Y7 30,000 505,000 Y7 Total 30,000 530,000 Total Step by Step Solution
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