Question
Consider the following two mutually exclusive projects. Time Project A Project B 0 -$300 -$405 1 -$387 $134 2 -$193 $134 3 $100 $134 4
Consider the following two mutually exclusive projects.
Time Project A Project B
0 -$300 -$405
1 -$387 $134
2 -$193 $134
3 $100 $134
4 $600 $134
5 $600 $134
6 $850 $150
7 $180 $284
What is each projects payback, discounted payback, IRR, and NPV with a cost of capital of 12%? Which project should be selected? What is the best method or technique (NPV, IRR, Payback, Discounted Payback) to use in evaluating each type of project
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Dave Ramseys Complete Guide To Money
Authors: Dave Ramsey
1st Edition
1937077209, 978-1937077204
