Determine project a is economically profitable investments

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You are presented with two investment projects A and B. Project A involves an initial outlay of $ 3000 and promises to yield a stream of net revenues $650 for 10 years at an annual interest rate of 15%. Project B involves an initial outlay of $ 5,500 and promises to yield a stream of net revenues $1,100 for 10 years at an annual interest rate of 15%.

You are required to:

Problem a) Determine whether Project A and project B are economically profitable investments

Problem b) Based on question (a) above, state which of the two projects is more profitable

Reference no: EM133012643

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