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problem: We have three possible projects and we can invest in only 1 project.  Suppose our weighted cost of capital is seven percent and project each project requires an investment of $10,000.  Using payback, NPV and IRR determine which project we should choose and describe why.

Project

Year 1

Year 2

Year 3

Year 4

A

9000

2000

1000

0

B

4000

4000

4000

12000

C

0

10000

4000

11000

 

 

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916231

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