Should go ahead with an investment project

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Say an organisation is figuring out whether or not it should go ahead with an investment project. The manager of the organisation has been told by his engineers that the project will cost $10 million and can be built straight away. The manager has also been told by his marketing section that the project will result in revenues of $2.8 million this year and the following three years. The manager has asked you as his economist to advise him about the project and if it should go ahead. If the current interest rate is 5% would you advise the manager to invest in the project? ?

Reference no: EM131200341

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