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Yancey Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Project
Yancey Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows:
Project | Investment Required | Net Present Value | Life of the Project (years) | Internal Rate of Return |
A | $825,000 | $186,000 | 7 | 14.31% |
B | $675,000 | $180,000 | 14 | 12.36% |
C | $580,000 | $205,800 | 10 | 15.35% |
D | $764,000 | $163,744 | 3 | 19.53% |
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The net present values above have been computed using a 8% discount rate. The company wants your assistance in determining which project to accept first, which to accept second, and so forth. The company |
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