Chapter 6 Asset Investment Decisions and Capital Rationing
The cars cost £10,000 and a choice has to be made between four alternative (mutually exclusive) projects. Project 1 is to sell the cars on the secondhand market after one year for £7,000. Project 2 is to sell after two years for £5,000. Projects 3 and 4 are three-year and four-year cycles and will produce £3,000 and £1,000 respectively on the secondhand market. The cost of maintenance ... ................
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