A firm has the choice of investing £19,000 in one of two project, r= 3.5%The revent obtained are as follows Year Project A Project B 2,500 1 4500 2 3300 5500 3 3500 2500 4 2300 1500 8000 3500 6. 4500 3250 Total 24,100 20750

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A firm has the choice of investing £19,000 in one of two project, r = 3.5% The revenues
obtained are as follows
Year
Project B
Project A
2,500
1
4500
2
3300
5500
3
3500
2500
2300
1500
5
8000
3500
6
4500
3250
Total
24,100
20750
Which project would you advise them to invest in?
Transcribed Image Text:A firm has the choice of investing £19,000 in one of two project, r = 3.5% The revenues obtained are as follows Year Project B Project A 2,500 1 4500 2 3300 5500 3 3500 2500 2300 1500 5 8000 3500 6 4500 3250 Total 24,100 20750 Which project would you advise them to invest in?
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