Accounting the projects risk


Question:

As a financial officer, you must determine which project your company should accept. The projects are mutually exclusive and the net present value (NPV) calculations for each take into account the project's risk. Which project (A or B) would you recommend and explain your reasons for this recommendation.

 

Project A

 

Project B

 

NPV

$3 million

 

$2.5 million

 

RISK LEVEL

very risky

 

very safe

 

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Project Management: Accounting the projects risk
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