Question: You are given the following table to determine which projects your organisation should undertake: Project Investment (Rm) Cash flow (Rm) Present Value Cash flow (Rm)

You are given the following table to determine which projects your organisation should undertake: Project Investment (Rm) Cash flow (Rm) Present Value Cash flow (Rm) Present value Total NPV Year 0 Year 1 Year 2 Apple farming -20 +60 54.55 +10 8.26 +43 Butter making -10 +10 9.09 +40 33.06 +32 Corn farming -10 +10 9.09 +30 24.79 +24 Based on the information provided and the fact that your company has a company has a limit on its capital expenditure of R20-million, what decision would you make?

Select one:

Butter making and corn farming

Corn farming only

Apple and corn farming

Apple farming only

Butter making only

Clear my choice

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