Question
A firm with a cost of capital of 12.5% is evaluating 3 capital projects. The IRRs are as follows: Project IRR #1. 12% #2. 15%
A firm with a cost of capital of 12.5% is evaluating 3 capital projects. The IRRs are as follows:
Project IRR
#1. 12%
#2. 15%
#3. 13.5%
The firm should:
A. Accept 2; reject 1&3
B. Accept 2&3; reject 1
C. Accept 1; reject 2&3
D.Accept 3; reject 1&2
E. accept all projects
F. reject all projects
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
7th Edition
0073368717, 978-0073368719
