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QUESTION 2 Your firm is contemplating two investment projects at a discount rate of 10 percent....

QUESTION 2

  1. Your firm is contemplating two investment projects at a discount rate of 10 percent. The first project anticipates a profit of $100,000 in each of the next four years while the second project anticipates a profit of $75,000 in each of the next six years. As the investment manager, you need to advice and then explain to the top management which project your firm should undertake.
  1. b. Using relevant illustration, describe the “Time Value of Money” concept and its significance for managers’ decision making. Do you think this concept is applicable for Muslim managers? Explain your answer.
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