ou work for the 3T company, which expects to earn at least 18 percent on its investments. You have to choose between two similar projects. Project Alpha with an initial investment of 325,000$ and has a projected net cash flow of $150,000 $175,000 the next seven years $190,000 $197,000 and $70,000.00 in $215,000 Project Beta with an initial investment of 300,000$ and has a projected net cash flow of $150,000 $150,000 $200,000 $180,000 and $90,000 in the $250,000

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 12P
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I need answer within 20 minutes please please with my best wishes
ou work for the 3T company, which
expects to earn at least 18 percent on its
investments. You have to choose between
two similar projects.
Project Alpha with an initial investment of
325,000$ and has a projected net cash flow
of
$150,000
$175,000
the next seven years
$190,000
$197,000 and $70,000.00 in
$215,000
Project Beta with an initial investment of
300,000$ and has a projected net cash flow
of
$150,000
$150,000
$200,000
$180,000 and $90,000 in the
$250,000
next seven years
Which of the two projects would you fund
if the decision is based only on financial
information?
Select one:
a. Both projects are rejected
b. Both projects are accepted but the
priority goes to project Alpha.
c. Project Beta
d. Project Alpha
Transcribed Image Text:ou work for the 3T company, which expects to earn at least 18 percent on its investments. You have to choose between two similar projects. Project Alpha with an initial investment of 325,000$ and has a projected net cash flow of $150,000 $175,000 the next seven years $190,000 $197,000 and $70,000.00 in $215,000 Project Beta with an initial investment of 300,000$ and has a projected net cash flow of $150,000 $150,000 $200,000 $180,000 and $90,000 in the $250,000 next seven years Which of the two projects would you fund if the decision is based only on financial information? Select one: a. Both projects are rejected b. Both projects are accepted but the priority goes to project Alpha. c. Project Beta d. Project Alpha
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Publisher:
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