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Project 1 Project 2 Project 3 Project 4 Project 5 Net Present Value $ 372.89 $ 5,552.20 $ 453.92 $ 5,173.64 $ 5,284.43 Interest rate:
Project 1 | Project 2 | Project 3 | Project 4 | Project 5 | |
Net Present Value | $ 372.89 | $ 5,552.20 | $ 453.92 | $ 5,173.64 | $ 5,284.43 |
Interest rate: | 7.98% |
Assume the projects are mutually exclusive. Note which projects you would take on at the following interest rates: 5.12%, 7.86%, 12.70%, 18.24%.
Next, assume that Projects 2 and 3 are not mutually exclusive, but the others are (i.e., you can take on either Project 1, Project 2, Project 3, Projects 2 and 3, Project 4, or Project 5). Note which projects you would take on at the following interest rates: 5.12%, 7.86%, 12.70%, 18.24%.
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