Question: GE has the following two projects that it is considering; it can choose only one. Project A has an investment outlay/expense today of $11.1M, and
GE has the following two projects that it is considering; it can choose only one. Project A has an investment outlay/expense today of $11.1M, and its cash flows over the next three years are $4.7M, $4.7M, and $5.8M. Project B has an outlay of $11.1M, and cash flows of $0M, $0M, and $15.7M. Which project should GE choose if the cost of capital for similar projects is 3.00%?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
