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Your company has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the information that is
Your company has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the information that is provided, which should you accept?
| A | B | C | D |
Payback (years) | 4 | 5 | 2 | 5 |
IRR | 18% | 20% | 20% | 12% |
NPV (Millions) | $140 | $75 | $35 | $100 |
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Question 7 options:
A | |
B | |
C | |
B and C | |
D |
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