Question: Darin Clay, the CFO for MakeMoney.com, has to decide between the following two projects: Year Project Million Project Billion 0 -$2,000 -$ Io 1 Io

Darin Clay, the CFO for MakeMoney.com, has to decide between the following two projects:

Year Project Million Project Billion

0 -$2,000 -$ Io

1 Io + 240 Io + 800

2 1,040 1,600

3 1,600 2,400

The expected rate of return for either of the two projects is 14 percent. What is the range of initial investment (Io) for which Project Billion is more financially attractive than Project Million (round final answer to two decimal places)?

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