Question

Accounting Management

A manager of your Company. ask your advice to evaluate 4 projects, consider the following information to determine the project the manager should be select by the following criteria’s:

1-   Risk-Adjusted Discount Rate RADR
2-   Equivalent Certainty Factor CF

Projects	A	B	C
Cost	100000	150000	200000
Expected of cash inflows	20000	25000	30000
Life( years)	7	9	10
Level of risk ( c.v)	0.24	0.34	0.18

   
             company usually uses the following discount rates 10%, 7%, 12%, and certainty factors 0.633, 0.742, 0.543

Risk free rate 5%

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