RTE Telecom, Inc. is a U.S. firm that wants to expand its
business internationally. It is considering mutually exclusive
potential projects in both Germany and Mexico, and the German
project is expected to take six years, whereas the Mexican project
is expected to take only three years. However, the three-year
project is repeatable. If the cost of capital for each project is
10%, what is the difference in NPVs between the German and Mexican
projects?
Project:
German
Project:
Mexican
Year...