What is Constru Ltd?
Constru Ltd is a real estate developer. It is planning to make the investment for which it came across different investment options. The following are the information available related to benefits and costs related to various investment options:
Is project 2 a positive outcome?
Analysis: Being both the projects have positive outcomes; both of the projects are beneficial for the company, i.e., the company will be in profit if it undertakes any of the projects. However, as the company has to choose one out of two, the project with a higher benefit-cost ratio will be selected. In the present case, project 2 has a higher benefit-cost ratio, so as per Cost-benefit analysis, project two will be selected by financial analysis International Ltd
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