Business, 25.09.2020 04:01, Vyflores2528
You are the head of the project selection team at Broken Arrow records. Your team is considering three different recording projects. Based on past history, Broken Arrow expects at least a rate of return of 20 percent. Your financial advisors predict inflation to remain at 2 percent into the foreseeable future. Given the following information for each project, which one should be Broken Arrow's first priority? Should Broken Arrow fund any of the other projects? If so, what should be the order of priority based on return on investment? Please show your work.
Recording project : Time Fades Away
Year Investment Revenue Stream
0 $600,000 0
1 600,000
2 75,000
3 20,000
4 15,000
5 10,000
Recording project: On the Beach
Year Investment Revenue Stream
0 $400,000 0
1 400,000
2 100,000
3 25,000
4 20,000
5 10,000
Recording project: Tonight's the Night
Year Investment Revenue Stream
0 $200,000 0
1 200,000
2 125,000
3 75,000
4 20,000
5 10,000
Answers: 3
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You are the head of the project selection team at Broken Arrow records. Your team is considering thr...
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