Question

Agritex is considering building either a one-storey (Project A) or five-storey (Project B) block of offices on a prime site. The following information is available:


Initial Investment Outlay

Net Inflow at the Year End

Project A

-9,500

11,500

Project B

-15,000

18,000

Assume k = 10%, which project should Agritex undertake?

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Answer 1

Answer:

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Explanation:

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