Home » Cost and Economics in Pricing Strategy » Imagine you are an intern and have been invited to a meeting where two potential investment opportunities are being discussed. Project Avalon has an initial investment of $200,000, a return rate of 10%, and a revenue of $350,000. Project Green has an initial investment of $250,000, a return rate of 10%, and a revenue of $450,000. How would you expect the team to continue the comparison of the two companies?

Imagine you are an intern and have been invited to a meeting where two potential investment opportunities are being discussed. Project Avalon has an initial investment of $200,000, a return rate of 10%, and a revenue of $350,000. Project Green has an initial investment of $250,000, a return rate of 10%, and a revenue of $450,000. How would you expect the team to continue the comparison of the two companies?

Question 3

Imagine you are an intern and have been invited to a meeting where two potential investment opportunities are being discussed. Project Avalon has an initial investment of $200,000, a return rate of 10%, and a revenue of $350,000. Project Green has an initial investment of $250,000, a return rate of 10%, and a revenue of $450,000. How would you expect the team to continue the comparison of the two companies?

1 / 1 point

The team needs to know the magnitude of the investments for each project.

The team needs to know the magnitude of the payoffs for each project.

The team needs to discuss the revenue timing of the two projects.

The team needs to know the hurdle rate of each project.

In order to evaluate two projects with different investments and revenues, the team will also need to know more about the timing. While both projects have an immediate investment, they’ll need to know the timing of the revenue to complete their evaluations.