What would you recommend, Initial investment $800K, annual

What would you recommend

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Reference no: EM132173471

Question: The following two projects are recommended for investment:

a. Initial investment $800K, annual income $400K b. Initial investment $1,500K, annual income $700K The lives of both projects are five years. The projects are in a tax-free zone and the inflation is considered to be negligible. The investor has a MARR of 30%. He comes to you for advice and asks you to use the ROR method and make a recommendation. What would you recommend?

Reference no: EM132173471

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