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Consider 4 mutually exclusive projects (project Green, Project Red, Project White, Project Orange) listed in the table below. Based on the information given, which of
Consider 4 mutually exclusive projects (project Green, Project Red, Project White, Project Orange) listed in the table below. Based on the information given, which of the 4 projects should be accepted ? All projects last 6 years and have a minimum required rate of return of 8%.
Projects
Criterion Green Red White Orange
Present Worth $22,000 $26,000 $18,000 $29,000
Internal rate of return 16% 12% 15% 13%
External rate of return 14% 10% 13% 11%
Payback period in years 4 3 3 5
Select one:
- Orange
- Green
- Red
- White
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