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You are considering the following mutually exclusive projects: Year Project 1 Project 2 0 -53,530 -91,490 1 24,400 33,985 2 17,380 31,480 3 24,750 43,200

You are considering the following mutually exclusive projects:

Year Project 1 Project 2
0 -53,530 -91,490
1 24,400 33,985
2 17,380 31,480
3 24,750 43,200
4 11,360 23,580

Calculate the designated investment criteria. Assume the required return is 11.00% percent.

Project 1 Project 2
NPV $ $
PP years years
IRR % %

Question 2

Which project should be accepted?

Responses

Project 2

Project 1

Both projects

Neither

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