Question
Project 1 Payback period = 2 years 9 months NPV = 2,041 APR = 22.08% Project 2 Payback period = 2 years 10 months NPV
Project 1
Payback period = 2 years 9 months
NPV = £2,041
APR = 22.08%
Project 2
Payback period = 2 years 10 months
NPV = £3,995
APR = 26.19%
Based on the above, which project is best to invest in?
Step by Step Solution
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Here Best method is NPV among APR and Payback period In case of NPV We choose projec...
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Value at Risk The New Benchmark for Managing Financial Risk
Authors: Philippe Jorion
3rd edition
0070700427, 71464956, 978-0071464956
