The expected return on such projects is 15%. And the project in Manchester requires an investment of €24,450. Besides, the project in Manchester offers the following expected cash-flows:
Year 1 2 3 4
Expected cash-flows of the project in Manchester (€) 3900 7900 7900 14900
Analysis of the project in Manchester: (10 min)
Would you accept to invest in the project in Manchester? Calculate and Explain.
What is then the maximum amount you will accept to invest in this project in Manchester? Explain.
