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A company seeking investment opportunities has collected the following information: Project A Project B Project C Project D Initial investment $520,000 $360,000 $270,000 $390,000
A company seeking investment opportunities has collected the following information: Project A Project B Project C Project D Initial investment $520,000 $360,000 $270,000 $390,000 PV of cash inflows $670,000 $395,000 $310,000 $382,000 Payback period (years) 3.6 34.2 5.75 4.5 NPV of project $120,000 $155,000 $130,000 $115,000 Profitability index 1.65 1.29 1.55 1.36 If the company makes a decision based on the net present value, which project will be selected? OA. Project A OB. Project B OC. Project C OD. Project D 13
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
