Financial Measures

Instructions: For each of the six comparisons listed below, identify which of the two projects has the best financial measure.

1. Project A:IRR = 16%o

Project B:IRR = 22%o

2. Project C: Payback period = 12 months o

Project D: Payback period = 18 monthso

3. Project E: Benefit-cost ratio = 1.4o

Project F: Benefit-cost ratio = 1.7o

4. Project G: CPI = 0.7o

Project H: CPI = 1.3o

5. Project I: CPI = 1.4o

Project J: CPI = 1.5o

6. Project K: NPV = $125,000 o

Project L: NPV = $175,000 o