Question
Based on this answer for Payback Period, Internal Rate of Return, Net Present Value, and Modified IRR and Discounted PBP for Project A and Project
Based on this answer for Payback Period, Internal Rate of Return, Net Present Value, and Modified IRR and Discounted PBP for Project A and Project B, (Please answer Question 2):
IRR: Project A: 9%; Project B: 10%
MRR: Project A: 10%, Project B: 10%
Payback Period: Project A: 2.87; Project b: 3.16
Discounted Payback Period: 2.98
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What decision should you make regarding acceptance or rejection by each individual technique from #1 above (NPV? PBP? IRR? MIRR? Discounted PBP) for each project A and B? Explain the reasoning for each individual decision. Assume managerial criteria of 3.50 for the PBP technique and 3.00 for discounted PBP.
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