Consider the following two mutually exclusive projects. Time Project A Pr
Posted: Sun Jun 05, 2022 7:23 am
Consider the following two mutually exclusive projects.
Time
Project
A
Project B
0
-$300
-$405
1
-$387
$134
2
-$193
$134
3
$100
$134
4
$600
$134
5
$600
$134
6
$850
$150
7
$180
$284
What is each project’s payback, discounted payback, IRR, and NPV
with a cost of capital of 12%? Which project should be
selected? What is the best method or technique (NPV, IRR,
Payback, Discounted Payback) to use in evaluating each type of
project
Time
Project
A
Project B
0
-$300
-$405
1
-$387
$134
2
-$193
$134
3
$100
$134
4
$600
$134
5
$600
$134
6
$850
$150
7
$180
$284
What is each project’s payback, discounted payback, IRR, and NPV
with a cost of capital of 12%? Which project should be
selected? What is the best method or technique (NPV, IRR,
Payback, Discounted Payback) to use in evaluating each type of
project