Project A costs $10000. Increases profit by 4100 the next year, and 7000 the year after that.
Project B costs $6000. Increases profit in 2 years by 7100.
Firm can borrow money at rate of 8% and can invest money with almost no risk at 6%.
If the firm has $20000 on hand, would you invest in A, B, neither, or both? Would answers be different without money on hand?
Project B costs $6000. Increases profit in 2 years by 7100.
Firm can borrow money at rate of 8% and can invest money with almost no risk at 6%.
If the firm has $20000 on hand, would you invest in A, B, neither, or both? Would answers be different without money on hand?