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Which of the projects should the company accept? Project A Project B Project C Benchmark Payback 2.5 years 3.4 years 4.5 years Discounted Payback 2.7

Which of the projects should the company accept?

Project A

Project B

Project C

Benchmark

Payback

2.5 years

3.4 years

4.5 years

Discounted Payback

2.7 years

3.5 years

4.6 years

NPV

-$2.5

$5.8

$0.5

IRR

5.6%

11.2%

8.1%

MIRR

5.4%

7.7%

7.9%

Scenario 2: Based on the payback method,, which of the projects will the company accept? PLEASE SHOW WORK AND EXPLAIN, THANKS

  • Project A, B, and C are independent.

  • All projects have the same degree of risk.

  • The companys benchmark for payback period is 4 years.

Select one:

a. A, C

b. A

c. A, B, C

d. A, B

e. B, C

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