Good evening . I have a question regarding part B of the problem.
If the company would accept projects B&C NPV =2940$ for an investment of 8000$.(NPV per 1 $ invested = 37c)
If the company would accept projects A&C NPV=2100$ for an investment of 5000$ (NPV per 1 $ invested = 42 c)
How sould we judge this ? Which is better B&C or A&C?
Good evening . I have a question regarding part B of the problem.
If the company would accept projects B&C NPV =2940$ for an investment of 8000$.(NPV per 1 $ invested = 37c)
If the company would accept projects A&C NPV=2100$ for an investment of 5000$ (NPV per 1 $ invested = 42 c)
How sould we judge this ? Which is better B&C or A&C?
Thank you.
Is the point not that we can borrow up to $8500? The objective is to invest as much of the funds for the greater yield.