All techniques: Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and subsequent cash infl associated with these projects are shown in the following table. Cash flows Project B $60,000 Project A Project C $70,000 $22,500 Initial investment (CF) $30,000 Cash inflows (CF), t= 1 to 5 $10,000 $21,500 a. Calculate the payback period for each project. ine NPv of projeci C is S0r311.10. (Rouna to ine nearesi cent.) c. The IRR of project A is %. (Round to two decimal places.) The IRR of project B is %. (Round to two decimal places.) The IRR of project C is %. (Round to two decimal places.) d. Which project would you recommend? (Select the best answer below.) O A. Project C O B. Project B O C. Project A
All techniques: Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and subsequent cash infl associated with these projects are shown in the following table. Cash flows Project B $60,000 Project A Project C $70,000 $22,500 Initial investment (CF) $30,000 Cash inflows (CF), t= 1 to 5 $10,000 $21,500 a. Calculate the payback period for each project. ine NPv of projeci C is S0r311.10. (Rouna to ine nearesi cent.) c. The IRR of project A is %. (Round to two decimal places.) The IRR of project B is %. (Round to two decimal places.) The IRR of project C is %. (Round to two decimal places.) d. Which project would you recommend? (Select the best answer below.) O A. Project C O B. Project B O C. Project A
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
Related questions
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![All techniques: Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and subsequent cash inflows
associated with these projects are shown in the following table.
Cash flows
Project A
$30,000
$10,000
Project B
Project C
Initial investment (CF)
$60,000
$21,500
$70,000
$22,500
Cash inflows (CF), t= 1 to 5
a. Calculate the payback period for each project.
The NPv of projeci C is 017.10|. (Rouna to tne nearesi cEnt.)
c. The IRR of project A is
%. (Round to two decimal places.)
The IRR of project B is %. (Round to two decimal places.)
The IRR of project C is
%. (Round to two decimal places.)
d. Which project would you recommend? (Select the best answer below.)
O A. Project C
OB. Project B
OC. Project A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6803513d-9867-44ab-8041-5acd36451c57%2F5bf318f0-915f-47d7-8579-0138a44f3e56%2F8viszzn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:All techniques: Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and subsequent cash inflows
associated with these projects are shown in the following table.
Cash flows
Project A
$30,000
$10,000
Project B
Project C
Initial investment (CF)
$60,000
$21,500
$70,000
$22,500
Cash inflows (CF), t= 1 to 5
a. Calculate the payback period for each project.
The NPv of projeci C is 017.10|. (Rouna to tne nearesi cEnt.)
c. The IRR of project A is
%. (Round to two decimal places.)
The IRR of project B is %. (Round to two decimal places.)
The IRR of project C is
%. (Round to two decimal places.)
d. Which project would you recommend? (Select the best answer below.)
O A. Project C
OB. Project B
OC. Project A
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