Year 1 2 3 Project A 650 750 700 Project B 700 700 700 Project C 700 600 800 Assuming the interest rate being 4%, which
Posted: Fri Jul 01, 2022 7:42 am
Year
1
2
3
Project A
650
750
700
Project B
700
700
700
Project C
700
600
800
Assuming the interest rate being 4%,which project do you choose and why?
I choose project C because it has thehighest FV.
In Question 1, what kind of financialdecision have you made? What are examples of other types ofdecisions?
I’m making a decision to accept aproject that offers greater value in the future than others.
In Question 1, let us imagine afinance manager who insists on choosing Project B. What could behis/her reasoning?
1
2
3
Project A
650
750
700
Project B
700
700
700
Project C
700
600
800
Assuming the interest rate being 4%,which project do you choose and why?
I choose project C because it has thehighest FV.
In Question 1, what kind of financialdecision have you made? What are examples of other types ofdecisions?
I’m making a decision to accept aproject that offers greater value in the future than others.
In Question 1, let us imagine afinance manager who insists on choosing Project B. What could behis/her reasoning?