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The table below represents the cashflows from three investment projects: Year 0 1 2 3 4 5 -23 10 62 81 -24 -300 50 68
The table below represents the cashflows from three investment projects: Year 0 1 2 3 4 5 -23 10 62 81 -24 -300 50 68 70 90 98 prj 3 -823 0 -10 48 900 prj 1 prj 2 -2 56 The cost of capital is equal to 4%. Mark the statement(s) that is (are) correct: Select one or more: a. NPV rule and IRR rule lead to same decisions for the ranking of the three alternatives b. Project 3 has a huge inflow at time 5 that more than offset the initial outlay, for this reason project 3 is the preferred opportunity c. It could be that, a fourth project would have a positive cashflow at time zero. d. The NPV rule would take into better consideration the time value of money, which instead the IRR rule does not consider
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