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You are evaluating two investment projects for your company. The cost of capital is 12%. The cash flows for each investment are given below 5.
You are evaluating two investment projects for your company. The cost of capital is 12%. The cash flows for each investment are given below 5. Using the payback criterion and a cutoff payback period of 2.5 years, determine whether each project is acceptable. Determine whether each project is acceptable using the net present value (NPV) criterion. Find the internal rate of return (IRR) of Project B (hint: it is either 14\%, 16\% or 18\%). Is that project acceptable using the IRR criterion
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