You are also offered the opportunity to invest in another project, called Belarus. It also requires


Question: You are also offered the opportunity to invest in another project, called Belarus. It also requires you to put up an amount of £10,000 now, with estimated inflows and outflows of cash for the next six years being:

Year Inflow Outflow
1 £4,000 £2,000
2 £7,000 £3,000
3 £9,000 £4,000
4 £ 10,000 £3,000
5 £ 12,000 £2,000
6 £ 10,000 £3,000

The interest rate is again assumed to be i = 10% throughout the life of the project. The NPV for this project is £13822.17. Which is the better investment, Abekus or Belarus? Explain your answer.

Price: $2.99
Solution: The solution consists of 1 page
Deliverable: Word Document

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