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The managers of Silver Sun Consulting have evaluated five potential projects. Each project has conventional cash flows. Based on the information in the table and
The managers of Silver Sun Consulting have evaluated five potential projects. Each project has conventional cash flows. Based on the information in the table and this paragraph, which one of the projects is the riskiest? Project Cost of capital (in %) Net present value (in millions of dollars) Payback period (in years) Discounted payback period (in years) Internal rate of return (in %) A 14.2 16.8 3.4 4.2 14.3 10.2 -5.7 3.1 infinity 9.6 - 12 4.4 8.6 L 9.1 12.1 12 8.1 57.5 6.7 9.7 14.5 N 7.7 13.1 6.8 9.3 15.4 Project A Project D Project 1 Project L Project N The managers of White Mountain Food have evaluated five potential projects. Each project has conventional cash flows. Based on the information in the table and this paragraph, which one of the projects is the safest? Project Cost of capital (in %) Net present value (in millions of dollars) Payback period (in years) Discounted payback period (in years) Internal rate of return (in %) > 13.7 16 2.9 3.7 13.8 9.7 -4.9 2.6 infinity 9.1 11.5 - 3.6 - 8.6 11.6 7.6 56.7 9.2 14 c N. 7.2 | 12.3 16. 3 8. 8 14.9 14.9 Project A Project F Project 1 Project J Project N
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