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The table below contains information on six potential projects that you could invest in. There are no cash flows after year 4. Assuming that you
The table below contains information on six potential projects that you could invest in. There are no cash flows after year 4. Assuming that you can only pick one, which one should you choose? Select the best answer. IRR Project Project A Project B Project C Project D Project E Project F FCF Forecasts by Year (in $1,000) 0 1 2 3 4 (350) 80 120 150 300 (420) 500 90 10 0 (480) (20) 270 300 350 (500) 150 165 180 510 (375) (25) 150 175 200 (300) 300 0 0 Interest Rate (EAR) 10% 10% 10% 12% 12% 12% 23.8% 36.1% 22.7% 27.4% 9.5% 45.7% Payback Period 3 Years 1 Year 3 Years 5 Years 5 Years 1 Year 200 O Project A O Project B O Project C Project D Project E O Project F
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