Question
Can the NPV for following projects be added if they have the following payback periods and IRRs ? Discount Rate/CoCapital is 5%. If a company
Can the NPV for following projects be added if they have the following payback periods and IRRs ? Discount Rate/CoCapital is 5%. If a company were to pick first two or all three, what would be the combined NPV? Which combo is a better option ?
| Project | IRR | Payback Peirod | NPV |
| Alpha | 55% | 5 | $100 |
| Omega | 15% | 4 | $150 |
| Tau | 75% | 3 | $340 |
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Healthcare Finance Modern Financial Analysis For Accelerating Biomedical Innovation
Authors: Andrew W. Lo, Shomesh E. Chaudhuri
1st Edition
0691183821, 978-0691183824
