Question: Please answer the question below... A companies is evaluating two investment projects whose cash flows ar elisted below Point in time Project A Project B
Please answer the question below...
A companies is evaluating two investment projects whose cash flows ar elisted below
| Point in time | Project A | Project B |
| 0 | -120 000 | -120 000 |
| 1 | 60 000 | 15 000 |
| 2 | 45 000 | 45 000 |
| 3 | 42 000 | 55 000 |
| 4 | 18 000 | 60 000 |
The company's required rate of return is 15%
1.1 Advise the company whether to undertake the two projects. (6 marks)
1.2 Indicatee the maximum outlay at time 0 for each project before it ceases to be viable
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