Question
Question 5 (2 points) XYZ, Inc. is evaluating several capital budgeting projects which are summarized in the table below. The cost of capital for XYZ
Question 5 (2 points)
XYZ, Inc. is evaluating several capital budgeting projects which are summarized in the table below. The cost of capital for XYZ is 8%.
| Project | A | B | C | D |
| NPV | $1,000 | $1,500 | $1,200 | ($400) |
| IRR | 25% | 12% | 15% | 5% |
| Payback Period (years) | 4.0 | 3.0 | 2.0 | 1.5 |
If these projects are mutually exclusive, then XYZ should accept project(s)
Question 5 options:
|
| A |
|
| B |
|
| C |
|
| D |
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
