Data: Company: Sportball Plc Products :Footballs and basketballs Capital to invest :£ 100.000 Project 1: Manufacture Shoes Project 2:Manufacture Shirts ProjectRevenues 1st Year2nd Year3rd Year Shoes £ 80,000 £ 75,000 £ 25,000 Shirts £ 60,000 £ 50,000 £ 50,000 Rate on a Gov Bond(The risk-free rate):5% FTSE 100 (Expected rate of the market):8% Sportball's β:0.90 Shoes Leader's β:0.95 Shirts Leader's β:1.1 a)Which project should Sportball plc choose? In order to be able to decide anyone of the projects, first of all we must analyze the ß previously that we will choose …showed first 75 words of 1649 total…

…showed last 75 words of 1649 total…costs to evaluate cash flows they are, Incidental effects or side effects of a project, sunk costs, net working capital, Opportunity cost (as we saw earlier), Financing costs. As a conclusion and after reading many author, we can say that, in spite of being sometimes a little difficult to find the cash flows, they still being the most appropriate to obtain a more accurate project evaluation as they represent a real cash in and out.