Assistance with another Lehmann Questions no 2 of the 75 questions
|A company has to make a choice between two projects, because the available resources in money and kind are not sufficient to run both at the same time. Each project would take 9 months and would cost $250,000.
Assumed is a discount rate of 5% per year. Looking at the present values of the benefits of these projects in the first 3 years, what is true?
|Both projects are equally attractive.|
|The first project is more attractive by app. 7%.|
|The second project is more attractive by app. 5%.|
|The first project is more attractive by app. 3%.|
Need help with the solution.
Thank you! :)