Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Jack Has three projects in hand but he is quite confused among the three . He has BDT 500000 available to invest today. The Cost of capital or discount rate is 7%.The cash for the projects are provided below
Project A : It will give a return of 40000, 60000,80000, 93000, 70000, 87000, 85000,56780 TK for year 1,2,3,4,5,6,7,8 respectively
Project B: It will give a return of 30000 for coming 20 years
Project C: It will give a return of 2500 TK (at the beginning of each month) for upcoming 28 years on a monthly basis
Advice Jane which project should be invested on and why?
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