Question

In: Finance

Initial Cash flow investment Project A $5 million $2 million per year for four years Project...

Initial Cash flow

investment

Project A $5 million $2 million per year for four years
Project B $3 million $1 million per year for five years
Project C $2 million $1 million per year for four years
Project D $3 million $1.5 million per year for three years

An investor has a budget of $5 million. He can invest in the projects shown above. If the cost of capital is 6%, what investment or investments should he make?

Select one:

A. Project A

B. Project B

C. Project B and Project C

D. Project C and Project D

Solutions

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