Question
IO PI IRR LIFE Project 1 $300,000 1.12 14.38% 15 years Project 2 $150,000 1.08 13.32% 6 years Project 3 $100,000 1.20 16.46% 3 years
IO PI IRR LIFE
Project 1 $300,000 1.12 14.38% 15 years
Project 2 $150,000 1.08 13.32% 6 years
Project 3 $100,000 1.20 16.46% 3 years
Assume that the cost of capital is 12%.
If the firm has unlimited capital and each project is independent, which project(s) should be accepted?
| Project 1 Projects 1 and 2 Projects 1 and 3 Projects 2 and 3 Projects 1, 2 and 3 |
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Canadian Public Finance
Authors: Genevieve Tellier
1st Edition
1487594410, 978-1487594411
