Question
A company is considering which of the four mutually exclusive projects it should take. The projects are described as below: NPV IRR (%) Payback Period
A company is considering which of the four mutually exclusive projects it should take.
The projects are described as below:
NPV IRR (%) Payback Period (years)
Project 1 $60,800 25.3% 6.5
Project 2 -$5,000 9.6% 1.8
Project 3 $29.100 18.7% 2.4
Project 4 $34,600 21.8% 3.9
The company's maximum acceptable payback period is 6 years. The discount rate is
10%. Which project should it select?
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
