Question: Sunshine technology is considering the following three projects, and it has to choose only one. Project A has an expense of 10,0000 today, and the
Sunshine technology is considering the following three projects, and it has to choose only one. Project A has an expense of ₹10,0000 today, and the cash flows over the next three years are ₹20,000, ₹40,000 and ₹70,000. Project B has an outflow of ₹1,10,000 and cash flows of ₹40,000, ₹80,000, and ₹20,000. The cost of Project C is ₹1,20,000, and cash inflows of ₹0, ₹20,000, and ₹1,41,500. Which project should this company choose if the capital cost for similar projects is 6 per cent?
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