Evaluate budget
Evaluate the next case and choose which is the best project.
- The manager of a hospital intends to compare two investment projects, in order to provide the same number of new medical services to the community. The initial investment of each project, as well as their respective cash flows are shown in the following table:
| Project | To | B |
| Initial investment | $600,000 | $600,000 |
| Flow year 1 | $300,000 | $100,000 |
| Flow year 2 | $300,000 | $200,000 |
| Flow year 3
|
$100,000
|
$300,000
|
| Flow year 4
|
$50,000
|
$400,000
|
| Flow year 5 | $0
|
$500,000 |
Which of the two is a better project for the recovery period?
Instructions:
It must include at least 2 academic sources, formats and cited in accordance with current APA regulations. Avoid plagiarism.
