Advanced financial management revision question and answer

Company A is considering investing in a project which has a three year life. The project would involve an initial investment of Sh.20 million. The finance manager has come up with expected probabilities for various possible economic conditions as follows:

Required:
Assuming a discount rate of 15% should company A invest in the project?
ANSWER

Reject the investment since NPV is negative.

(Visited 87 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published. Required fields are marked *