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Computation payback period, NPV, IRR.

We have three possible projects and we can invest in only one project. Suppose our weighted cost of capital is 7% and project each project requires an investment of $10,000. Using payback, NPV and IRR decide which project we should select and explain 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.:- M9160570

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