(NPV and PI) You are offered the following four single projects (there is only one of each project):

Assume that the company is indifferent between taking and rejecting Project D.

a. Calculate the IRR of Project D.

b. Assume that the projects can be done only once. If you can choose only one of the projects above (i.e., the projects are mutually exclusive), which one will you choose?

c. Assume that you can take more than one project at the same time and you have no budget constraints (and the projects are independent of each other). What will you do?

d. Assume you can take more than one project at the same time. Also assume that you can invest in a fraction of a project (you do not have to buy the entire project). You have only $200. What will you do?

Transcribed Image Text:

A B C D E 1 Project 0 1 2 3 2 A -200 0 0 500 3 B -50 40 40 40 4 C -75 45 45 70 5 D -100 0 0 133.1