Question: Can you help me answer this question? The subject is Accounting (Financial Management) kindly explain also 1. Empire plans to invest $20M to refresh 10

Can you help me answer this question? The subject is Accounting (Financial Management) kindly explain also

1. Empire plans to invest $20M to refresh 10 of its stores in Ontario. The investment will mean losing $0.2M in the first year due to renovation, but will bring in additional $0.6M, $0.8M and $1M in Revenue for each of the Stores in the following three years. Empire uses all 3 popular methods to evaluate projects. Assume the opportunity cost of capital is 6%, should Empire go ahead? Why?

2. If you are one of the bankers considering a $100M bank loan request from Loblaw and Empire, which company would you consider first in granting the bank loan? Why?

Can you help me answer this question? The subject is Accounting (Financial

Management) kindly explain also 1. Empire plans to invest $20M to refresh

Empire plans to invest $20M to refresh 10 of its stores in Ontario. The investment will mean losing $0.2M in the first year due to renovation, but will bring in additional $0.6M,$0.8M and $1M in Revenue for each of the Stores in the following three years. Empire uses all 3 popular methods to evaluate projects. Assume the opportunity cost of capital is 6\%, should Empire go ahead? Why? 4. If you are one of the bankers considering a $100M bank loan request from Loblaw and Empire, which company would you consider first in granting the bank loan? Why

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