DL Management
A Consulting firm has employed you as a technical specialist to advise them on the investment options to last for a decade. The initial capital outlay for the investments is estimated at K3, 500. The projected income under the different combinations of business fluctuations are as follows
|
|
Competitive
|
Normal
|
Recession
|
|
Consulting firm
|
Zed
|
450
|
600
|
350
|
|
Ind
|
350
|
450
|
550
|
The consulting firm has noted that in the past months, the risks of investments are projected as Normal=50%, Recession=20% and Competitive=30%
The Consulting firm is very confident with your expertise and skills you have learnt from Business Decision Making. The investment decision is highly dependent on analysis ad projections
As a result of a rise in inflation rates and the cost of business, the investment cost increases by 30% and at the same time, the business cycles shows a rise of income 10%. Which project will be worthy considering?