Mega Plc. is planning to decide between the following two projects Lampard and Gerrard.The estimated annual
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Question:
Mega Plc. is planning to decide between the following two projects – Lampard and Gerrard.The estimated annual cash flows (in USD) from the individual projects are given below. The estimated annual cash flows (in USD) from the individual projects are given below(as shown on the table).
Questions
• Decide which project is better in terms of the period of time taken for the future net cash inflows to match the initial cash outlay (i.e., in terms of the Payback period).
• What if Mega Plc. runs a policy of accepting all projects that pay back within 3 years?
Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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