Elsiver, Ltd. Has a capital budget of 3,000,000 next year. Below is a list of Elsivers available projects, including the projects NPV, IRR and PI. Which projects should Elsiver include if their cost of capital is 13%?

Investment

Project Outlay NPV IRR

A 800,000 57,000 21%

B 1,200,000 54,000 14%

C 700,000 49,000 17%

D 800,000 40,000 15%

Multiple Choice

• A, B and C only

• A and B only

• A, B, C and D

• A, B and D only

Group Ends