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Two capital investments are under consideration. Excel has been used to calculate the internal rate of return for each, with the results below: A B
Two capital investments are under consideration. Excel has been used to calculate the internal rate of return for each, with the results below:
A | B | |
---|---|---|
1 | -90,000 | -90,000 |
2 | 32,000 | 29,000 |
3 | 25,000 | 26,000 |
4 | 26,000 | 24,000 |
5 | 24,000 | 24,000 |
6 | 27,000 | 19,000 |
7 | 15% | 12% |
If the company's hurdle rate is 14%, which of the following is true?
Group of answer choices
Only proposal A should be accepted.
Both proposal A and proposal B should be accepted.
Both proposal A and proposal B should be rejected.
Only proposal B should be accepted.
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