Question
Haystack Bookstore is consider two competing projects, and can only fund one of them (they are mutually exclusive): Novelty Hats Inflatable Cars Payback Period 4.2
Haystack Bookstore is consider two competing projects, and can only fund one of them (they are mutually exclusive):
Novelty Hats Inflatable Cars Payback Period 4.2 years 2.7 years Internal Rate of Return 15% 12% Net Present Value +$230,000 +$190,000
Which project should be chosen, and which is the bestreason to choose that option?
Group of answer choices Inflatable Cars: shorter payback period Novelty Hats: longer payback period Novelty Hats: higher NPV Inflatable Cars: lower IRR Novelty Hats: higher IRR Inflatable Cars: lower NPV
Haystack Bookstore is consider two competing projects, and can only fund one of them (they are mutually exclusive):
| Novelty Hats | Inflatable Cars | |
| Payback Period | 4.2 years | 2.7 years |
| Internal Rate of Return | 15% | 12% |
| Net Present Value | +$230,000 | +$190,000 |
Which project should be chosen, and which is the bestreason to choose that option?
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Intermediate Accounting IFRS Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
2nd Edition
1118443969, 978-1118443965
