Question
A company has to decide between the following three mutually exclusive projects: Project A Project B Project C Economic useful life 5 years 7 years
A company has to decide between the following three mutually exclusive projects:
|
| Project A | Project B | Project C |
| Economic useful life | 5 years | 7 years | 3 years |
| NPV | R1 000 | R1 500 | R900 |
| Cost of Capital | 13% | 13% | 13% |
Which of the project(s) is the most profitable?
(a) Project A
(b) Project B
(c) Project C
(d) Project A and C
(e) None of the above
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ISE Business Accounting
Authors: Frank Wood, Alan Sangster
8th Edition
9780273638407
