You work for the 3T company, which expects to earn at least 18 percent on its
investments. You have to choose between two similar projects. The following chart
shows the cash information for each project. Which of the two projects would you fund
if the decision were based only on financial information? Why?
5. You are the head of the project selection team at SIMSOX.
* Your team is considering
three different projects. Based on past history, SIMSOX expects at least a rate of return
of 20 percent.
Given the following information for each project, which one should be
SIMSOX’s first priority? Should SIMSOX fund any of the other projects? If so, what
should be the order of priority based on return on investment?