Suppose that the firm you work for has placed you in charge of determining whether potential investment projects are worthwhile. One of your subordinates calculates that Investment A would require an initial investment (cost) of $1.5 million this year, and would generate a total of $1.9 million in revenues over the next 10 years.

Given the information above, can you definitively state whether Investment A is worthwhile? If so, explain why, and if not, explain what condition must be satisfied for the investment to be worthwhile.

Answer rating: 100% (QA)

Answer Explanation I The information provided is not sufficient to definitively ... View the full answer