Question
Consider the following projects, for a firm using a discount rate of 10%:
project NPV IRR PI
A $200,000 12.2% 1.04
B $200,001 11% 1.01
C $60,000 10.1% 1.61
D $(235,000) 9% .95
If the projects are independent, which, if any, project(s) should the firm accept?
a. Project A
b. Project B
c. Project D
d. Projects B and D
e. Projects A, B and C
project NPV IRR PI
A $200,000 12.2% 1.04
B $200,001 11% 1.01
C $60,000 10.1% 1.61
D $(235,000) 9% .95
If the projects are independent, which, if any, project(s) should the firm accept?
a. Project A
b. Project B
c. Project D
d. Projects B and D
e. Projects A, B and C