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Business, 12.03.2021 15:40 ogpuhl

You have been asked to compare three alternative investments and make a recommendation. Project A has an initial investment of $5 million, and after-tax cashflows of $ 2.5 million a year for the next five years. Project B has no initial investment, has after-tax cash flows of $ 1 million a year for the next ten years, and a salvage value of $2 million (from working capital). Project C has an initial investment of $10 million, another investment of $5 million in ten years, and after-tax cashflows of $ 2.5 million a year forever. The discount rate is 10% for all three projects. Which of the three projects would you pick

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