Question
You work for the 3T company, which expects to earn at least 18 percent on its investments. You have to choose between two similar projects.
You work for the 3T company, which expects to earn at least 18 percent on its investments. You have to choose between two similar projects. The following chart shows the cash information for each project. Which of the two projects would you fund if the decision is based only on financial information? Why? Exercises Review Questions *The solution to these exercises can be found in Appendix One. Chapter 2 Organization Strategy and Project Selection 53 Omega Alpha Year Inflow Outflow Netflow Year Inflow Outflow Netflow Y00 $225,000 225,000 Y00 $300,000 300,000 Y10190,000 190,000 Y1 $ 50,000 100,000 50,000 Y2 $ 150,0000 150,000 Y2150,000 0150,000 Y3220,00030,000 190,000 Y3250,00050,000200,000 Y4215,0000 215,000 Y4250,0000250,000 Y5205,00030,000 175,000 Y5200,00050,000150,000 Y6 197,0000 197,000 Y6180,000 0180,000 Y7100,00030,000 70,000 Y7120,00030,00090,000 Total 1,087,000505,000 582,000 Total 1,200,000 530,000670,000
Please send me the answer of this question with complete calculations. thanks
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