Ask Experts Questions for FREE Help !
    rmheins's Avatar
    rmheins Posts: 3, Reputation: 1
    New Member

    May 1, 2007, 05:28 PM
    re: business finace
    As a financial officer, you must determine which project your company should accept. The projects are mutually exclusive and the net present value (NPV) calculations for each take into account the project?s risk. Indicate which project (A or B) you would recommend and explain your reasons for this recommendation.

    Project A
    Project B

    $3 million
    $2.5 million

    Risk level
    very risky
    very safe
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member

    May 1, 2007, 07:53 PM
    Project A has a higher return, but it is also riskier.

    Therefore, it is your call.

    I would go with Project B, its only 500,000 less, yes, 1/6, but very safe vs. very risk in Project A

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Finace business [ 1 Answers ]

In what sense is a reinvestment rate assumption embodied in the NPV, IRR, and MIRR methods?

Finace [ 1 Answers ]

What is the formula to find the coupon rate of a bond?

Finace question [ 1 Answers ]

Mark and Ellot are friends. Mark wants to buy a new computer but does not have the money right now. Mark will pay Elliot $2,000 in five years if Mark will give him $1600 today. Elliot figures that there's an interest rate of 6% if he were to put the money in a bank instead of lending it to...

Question about finace management [ 1 Answers ]

Sir, Be please to share what is Profit Maximaization and Wealth Maximization and how they differ from each other. Thanking You

Business to business vs Business to Consumer retail [ 1 Answers ]

How does Business to business retail differ from business to consumer retail?

View more questions Search