Assume that your firm wants to choose between two project options: Project A: Br. 500,000 invested today will yield an expected income stream of Br150, 000 per year for 5 years, starting in Year 1.
Project B: an initial investment of Br 400,000 is expected to produce this revenue stream: Year 1 = 0, Year 2 = Br 50,000, Year 3 = Br 200,000, Year 4 = Br300, 000, and Year 5 = Br200, 000. Assume that a required rate of return for your company is 10% and that inflation is expected to remain steady at 3% for the life of the project. Which is the better investment? Why?

Project B should be the better investment

Explanation:

The computation is shown below;

Project ACash Flow      Discount Factor      New Inflows

(Present Value)

Year

0                ($500,000)             1.000                      ($500,000)

1                 $150,000                0.885                     $132,743

2                $150,000                 0.783                   $117,472

3                 $150,000                0.693                    $103,958

4                 $150,000                0.613                    $91,998

5                 $150,000               0.543                     $81,414

NPV Total                                                                $27,585

Project BCash FlowDiscount FactorNew Inflows

(Present Value)

Year

0                     ($400,000)       1.000                        ($400,000)

1                         $0                   0.885                        $0

2                      $50,000           0.783                       $39,157

3                      $200,000         0.693                       $138,610

4                      $300,000          0.613                        $183,996

5                      $200,000         0.543                           $108,552

NPV total                                                                   $70,315

Based on the above calculations, the project B contains high net present value as compared with the project A so Project B should be the better investment

si fuera 2 en colombia, entonces sería 10 pm en rusia

according to classical republican political theory, which democratic republics would function best?

a.   small republics, with people who had similar interests

b.   large republics, with people who had competing interests

c.   republics made up entirely of landowners

d.   republics made up entirely of servants