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Investment is possible in one or more of three projects – expected life 4 years.
a b c
$ $ $
outlay 10000 7000 1250
expected returns 4000 2500 325
(t1 – t4)The firm can borrow the finance at 10% pa.
Which project(s) should be undertaken?
The correct answer is Project A & B.
when to use pv table when to use annuity table? I tot this question would be using pv table.
You use the annuity discount factors when there is an equal annual cash flow.
Please watch my free lectures on this because it is all explained in the lectures.
The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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