Question

In: Finance

TABLE 4 Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash...

TABLE 4

Project

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Cash Flow

A

-15000

6000

7000

6000

6000

6000

B

-15000

7000

7000

7000

7000

7000

C

-18000

12000

2000

2000

2000

2000

  1. "Consider the cash flow of the three projects depicted in Table 4. The cost of capital is 7.5%. If an investor decided to take projects with a payback period of 2 years or less, which of these projects would he take?"

    A) Investment A

    B) Investment B

    C) Investment C

    D) none of these investments

Solutions

Expert Solution

jeff jeffy answered 2 years ago
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