(10%) Pierce plc, which has a cost of capital of 9.5%, is analysing two mutually exclusi

Question: Question 4: (10%)

Pierce plc, which has a cost of capital of 9.5%, is analysing two mutually exclusive investment opportunities. For both investments, the initial capital outlay will be £5,000 and the cash flows generated by each investment are as follows:

Year	Project Pain	Project Gain 3,000
1	800	Project Gain 3,000
2	2,000	3,000
3	3,000	1,000
4	2,500	500

Make a recommendation to Pierce as to which project it should implement, including an indication of whether that decision should be different in case the cost of capital changes in the near future.

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Type of Deliverable: Word Document