Question: This is finance problem. Please provide all your work. 4. The company Ijrou work for is trying to decide between two projects. Project 1 costs
This is finance problem. Please provide all your work.


4. The company Ijrou work for is trying to decide between two projects. Project 1 costs $160,033 up front, and has an expected life of 4 years, over which it will return $52,000 each of the four Ijrears. Project 2 would last for 20 years, costs $1.5 million upfront, and returns SEQUUU at the end of each of the 2D years. Assuming a real discount rate of 5%, which project has the higher equivalent annual net benefit? 5. lr'ou are offered Sl (in nominal dollars] 1' years. from HDW in exchange for a loan of $EDD today. l|"ou expect inflation to run 2.4% per year, and your real hurdle rate is. 4.5%. Should you make the loan
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