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Hawk, Inc. has a 15% required rate of return. Three divisions of Hawk have proposed three projects to increase income over the next 12 years.
Hawk, Inc. has a 15% required rate of return. Three divisions of Hawk have proposed three projects to increase income over the next 12 years. Three divisions report different measures as follows: Project A was reported to have an NPV of $(2,500) or negative $2,500. Project B was reported with an internal rate of return of 25%. Project C was reported to have a payback period of 18 years. With which of these projects should Hawk move forward?
A. All three sound great!
B. Project B
C. Project A
D. Project C
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