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
Deliverable: Word Document