Use the following information in the table below to answer the questions that follow: Project A...

 

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Use the following information in the table below to answer the questions that follow: Project A Project B Project C Initial Investment R 100 000,00 R 150 000,00 R 175 000,00 CF Year 1 R 48 000,00 R CF Year 2 R 42 000,00 R - R R CF Year 3 R 35 000,00 R 47 000,00 R CF Year 4 R CF Year 5 R - R 85 000,00 R 275 000,00 R 110 000,00 If you had capital rationed to R300 000, and the projects above were independent, which projects would you consider and why? Please include findings from employment of the capital budgeting techniques. Use the following information in the table below to answer the questions that follow: Project A Project B Project C Initial Investment R 100 000,00 R 150 000,00 R 175 000,00 CF Year 1 R 48 000,00 R CF Year 2 R 42 000,00 R - R R CF Year 3 R 35 000,00 R 47 000,00 R CF Year 4 R CF Year 5 R - R 85 000,00 R 275 000,00 R 110 000,00 If you had capital rationed to R300 000, and the projects above were independent, which projects would you consider and why? Please include findings from employment of the capital budgeting techniques.

Answer rating: 100% (QA)

1 Calculate the NPV for each project Project A Initial Investment R100000 CF Year 1 R48000 CF Year 2 ... View the full answer