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Problem: Sue has asked you to analyze the company's glass division which has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the information that is provided, which should you accept?


A

B

C

E

Payback (years)

1

5

2

5

IRR

18%

20%

20%

12%

NPV (Millions)

$40

$75

$35

$100

Justify your answer. What does the condition "mutually exclusive" mean? Why would the Division's cost of capital be different than the company's overall weighted cost of capital calculated in task 6? This is a project work, kindly add purpose and background of your work. Be detailed in your response and provide examples also.

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