E-solutions is a Greek company that has 770 million of cash resources available at t0....
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Finance
E-solutions is a Greek company that has 770 million of cash resources available at t0. It has identified three investment projects, as follows (all values in millions):
Project A B C
Outlay at t0 270 300 200
Inflow at t1 340 350 230
Assume that all projects exhibit constant returns to scale. If the market interest rate moved to 20% and 10% then which project will be accepted?
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