For this assignment, your instructor has assigned you to a small discussion group. Each group member will assume the role of a financial advisor at Global Computer Systems (GCS) and will complete the following task: Select one new project under consideration from Table 6 on page 5 of The Case of Global Computer Systems. Compute the required rate of return for the project. Once each group member has completed his or her calculations, compare the other projects to the one you analyzed. As a group, you must decide which investment project to recommend to the CFO of GCS, Gordon Brown. In order to make an informed decision, you must take financial risk and capital constraint into account.

1 $500 Europe 26.3% Existing product, new market 2 $400 USA 13.5% New product, new market 3 $650 Asia 8.6% Expand existing product in existing market 4 $1,500 Asia 23.4% New product, existing market 5 $350 USA 24.6% Replace Equipment 6 $750 Europe 10.2% Expand existing product in existing market 7 $250 Asia 26.7% Existing product, new market 8 $325 Asia 18.8% New product, existing market This table provides details of new projects under consideration by GCS in year N+6