Question
Year Project A Project B Project C 0 (33,000) (55,000) (77,000) 1 - 42,000 40,000 2 - 20,000 35,000 3 55,000 20,000 35,000 Cooney Co.
| Year | Project A | Project B | Project C |
| 0 |
(33,000) | (55,000) | (77,000) |
| 1 | - | 42,000 | 40,000 |
| 2 | - | 20,000 | 35,000 |
| 3 | 55,000 | 20,000 | 35,000 |
Cooney Co. is evaluating the following mutually exclusive projects. The manager has determined that the appropriate discount rate is 10% for all the recommended projects.
1A. Rank order the projects based on the net present value.
1B. Rank order the projects based on the profitability index
1C. Rank order the projects based on the internal rate of return
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Creating Shareholder Value A Guide For Managers And Investors
Authors: Alfred Rappaport
1st Edition
0684844109, 9780684844107
