Two projects being considered are mutually exclusive and have the following projected cash flows:

Year Project A Project B
0 -$50,000 -$50,000
1 $15,625 0
2 $15,625 0
3 $15,625 0
4 $15,625 0
5 $15,625 $99,500

If the required rate of return on these projects is 10%, which would be chosen and why?
A) B, because of higher NPV.
B) B, because of higher IRR.
C) A, because of higher NPV.
D) A, because of higher IRR.
E) Neither, because both have IRRs less than the cost of capital.


A

Business

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Anderson Compounds produces two industrial chemical compounds, Gorp and Gumm, from the same process, which last year, cost $480,000 . Anderson produced 20,00 . pounds of Gorp, which sells for $60 per gallon and 60,00 . gallons of Gumm, which sells for $30 per gallon. After the split-off point, Gorp required additional processing costing $300,00 . to make it salable. Using the adjusted sales

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a. Insurance Expense b. Dividends c. Notes Payable d. Accumulated Depreciation, Buildings

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The amortization of a customer list are

a. product costs. b. period costs. c. not required under U.S. GAAP. d. not required under IFRS. e. pay back costs.

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Why should companies focus more on preliminary and concurrent controls?

What will be an ideal response?

Business