Question
Ace Corporation is considering the following projects. The required return is 10%. Project A and B are mutually exclusive projects and there is no capital
Ace Corporation is considering the following projects. The required return is 10%. Project A and B are mutually exclusive projects and there is no capital rationing. Ace Corporation should select Project B due to higher IRR. True or False?
|
| Project A | Project B |
| Payback | 4.23 years | 4.78 years |
| NPV | $4567 | $3924 |
| IRR | 18% | 20% |
| PI | 1.34 | 1.48 |
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Handbook Of Business Valuation
Authors: Thomas L. West, Jeffrey D. Jones
2nd Edition
0471297879, 978-0471297871
