A B C D NPV $1,793,180 $1,732,583 $2,377,297 $1,640,093 IRR 18.03% 12.93% 15.47%

Question

           A       

B

C

D

NPV

$1,793,180

$1,732,583

$2,377,297

$1,640,093

IRR

18.03%

12.93%

15.47%

13.03%

MIRR

15.48%

11.50%

12.11%

11.64%

            Risk          High     Average      Low           Average

            I/ Y           12.03%       9.03%         6.53%        9.03

1.   Which of the projects are unacceptable and why?

2. Rank the projects that are acceptable, according to Mark

           A       

B

C

D

NPV

$1,793,180

$1,732,583

$2,377,297

$1,640,093

IRR

18.03%

12.93%

15.47%

13.03%

MIRR

15.48%

11.50%

12.11%

11.64%

Explanation / Answer

a) all projects are acceptable because every project has positive NPV

b) C > A >B >D

c) project C because it has highest NPV and other projects are not rejected because they are also having positive NPV

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.