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Project Initial NPV IRR A $100,000 $ 50,000 .13 B 1,000,000 $ 245,000 .09 C $ 800,000 $ 100,000 .14 D $ 2,000,000 $ 750,000
| Project | Initial | NPV | IRR |
| A | $100,000 | $ 50,000 | .13 |
| B
| 1,000,000 | $ 245,000 | .09 |
| C | $ 800,000 | $ 100,000 | .14 |
| D | $ 2,000,000 | $ 750,000 | .11 |
| E | $ 600,000 | $ -75,000 | .02 |
The discount rate used by the watershed district on its projects is 3.5%.
The five projects are mutually exclusive options, meaning you can pick only one project to invest in. They are also non-repeating projects, meaning you cant reinvest in the same project once the initial projects life is complete. Which project would you select if the budget is limited to $900,000?
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