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Dmitrij [34]
3 years ago
7

Using a General Journal Math Quiz

Business
1 answer:
riadik2000 [5.3K]3 years ago
6 0

Answer:

b

don

Explanation:

done

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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 informa
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The project to accept is:

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Cost of capital = 10%

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                            A       B        C        E

Payback (years)   1        5        2        5

IRR                    18%   20%    20%    12%

NPV (Millions) $40    $75    $35   $100

b) Project E should be preferred over all the other projects.  It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital.  It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.

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