X Co has $25 million to invest and she is considering three independent projects, project 1, 2,
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X Co has $25 million to invest and she is considering three independent projects, project 1, 2, and 3 all required initial investments of $25 million, $20 million, and $15 million, respectively. All three projects have 5 year lives and X Co. required rebate of return is 9%. Project 1, 2, and 3 generate annual revenue of $5.5 million, $5.0 million, and $3.5 million, respectively.
What investment strategy do you recommend for X Co?
What is the IRR of the investment strategy you recommend to X Co?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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