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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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