Determine if Project B can be included in the capital budget if its initial investment cost is 11% and it generates the

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answerhappygod
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Determine if Project B can be included in the capital budget if its initial investment cost is 11% and it generates the

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Determine if Project B can be included in the capital budget if its initial investment cost is 11% and it generates the following cash flows:

Year Cash flows ($)
0 -125
1 20
2 30
3 50
4 50
5 60

Select one:

a. It can be selected, because it has an NPV of $30.47
b. It should not be selected, as its NPV is negative.
c. It should not be selected as its NPV is less than the initial investment.
d. Can be selected as it has an NPV of $22.47
e. It can be selected since all the cash flows produced by the project are positive.
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