The Investment Detective

In: Business and Management

Submitted By olliekahn
Words 1627
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Questions: 1. Can you rank the projects simply by inspecting the cash flows? 2. What criteria might you use to rank the projects? Which quantitative ranking methods are better? Why? 3. What is the ranking you found by using quantitative methods? Does this ranking differ from the ranking obtained by simply inspection of the cash flows? 4. What kinds of real investment projects have cash flows similar to the cash flow below? Project Cash Flows

Project Number Initial Investment (In thousands of dollars) Year

1 ($2.000,00)

$330,00 $330,00 $330,00 $330,00 $330,00 $330,00 $330,00 $1.000,00

2 3 4 5 6 7 ($2.000,00) ($2.000,00) ($2.000,00) ($2.000,00) ($2.000,00) ($2.000,00)

$1.666,00 $0,00 $160,00 $280,00 $2.200,00 $1.200,00 $334,00 $0,00 $200,00…...

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