Question
Your company is faced with three independent proposals Project N:0 1 2 3 A -1,000 500 500 500 B -1500 1000 200 1000 C -3000
Your company is faced with three independent proposals
| Project | N:0 | 1 | 2 | 3 |
| A | -1,000 | 500 | 500 | 500 |
| B | -1500 | 1000 | 200 | 1000 |
| C | -3000 | 1300 | 1300 | 1300 |
With a budget of 3,000 at time 0 and MARR = 8%, which project or projects should choose? Use FV.
How much cash would you have at time 3? Answer this part by performing a minimum of computations.
Could you use IRR to obtain the answer to part a? Do you foresee any potential difficulties?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
