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sp2606 [1]
3 years ago
14

Firm has three different investment options, each costing $10 million. option a will generate $12 million in revenue at the end

of one year. option b will generate $15 million in revenue at the end of two years. option c will generate $18 million in revenue at the end of three years. which option should the firm choose?
Business
1 answer:
LekaFEV [45]3 years ago
7 0
Option a in order to get highest profit a year
a: 12 million a year
b: 15 ÷ 2 = 7.5 million a year
c: 18 ÷ 3 = 6 million a year.
to get most revenue, option a is the best choice
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Modified internal rate of return ( MIRR ) -

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