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Costco is evaluating three projects and will select the one with the highest PI. The company's cost of capital is 14.5%. Which project should Costco
Costco is evaluating three projects and will select the one with the highest PI. The company's cost of capital is 14.5%. Which project should Costco choose?
IRR | Investment | CF - Y1 | CF - Y2 | CF - Y3 | |
Project A | 11.00% | 75,000 | 35,000 | 40,000 | 45,000 |
Project B | 15.00% | 90,000 | 55,000 | 50,000 | 43,000 |
Project C | 15.00% | 50,000 | 40,000 | 25,000 | 11,000 |
a. | Project A | |
b. | Project B | |
c. | Project C | |
d. | None of the above |
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