A company is looking at launching a new business line and is considering the following options: country A or country B,
Posted: Thu May 05, 2022 8:07 am
A company is looking at launching a new business line and is
considering the following options: country A or country B, with the
following initial investments and expected cash flows:
product A product B
initial investment 650.000 810.000
year 1.
310.000 205.000
vear 2.
200.000 175.000
year 3.
50.000 155.000
year 4.
150.000 365.000
Where should the company expand, A or B, according to the
payback period and IRR of each project?
Considering that the discount factor is 4%, calculate the net
present value and benefit cost ratio for each project and
advise.
considering the following options: country A or country B, with the
following initial investments and expected cash flows:
product A product B
initial investment 650.000 810.000
year 1.
310.000 205.000
vear 2.
200.000 175.000
year 3.
50.000 155.000
year 4.
150.000 365.000
Where should the company expand, A or B, according to the
payback period and IRR of each project?
Considering that the discount factor is 4%, calculate the net
present value and benefit cost ratio for each project and
advise.