Question
Your boss is comparing 3 mutually exclusive projects with the following characteristics: Project #1 Project #2 Project #3 Net Present Value $250 $310 $280 Internal
Your boss is comparing 3 mutually exclusive projects with the following characteristics:
| Project #1 | Project #2 | Project #3 | |
|---|---|---|---|
| Net Present Value | $250 | $310 | $280 |
| Internal Rate of Return | 12.53% | 8.03% | 11.09% |
| Profitability Index | 2.50 | 0.80 | 1.96 |
| Payback period | 4.5 years | 4.5 years | 2.6 years |
The required payback period is 5 years, and the required return is 9%.
QUESTION: Based on all of the above information, which project would you recommend your boss to accept?
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The Wall Street Journal Complete Personal Finance Guidebook
Authors: Jeff D. Opdyke
1st Edition
030733600X, 978-0274804573
