If these projects were independent, which project(s) would be accepted? Why? If these projects were mutually exclusive, which project(s) would be accepted'

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The profitability analysis of three projects is provided below:
Project A
Project B
Project C
NPV
$10,000
$5,000
- $1,000
IRR
10%
15%
15%
WACC
8%
12%
16%
If these projects were independent, which project(s) would be accepted?
Why?
If these projects were mutually exclusive, which project(s) would be accepted?
Why?
Transcribed Image Text:The profitability analysis of three projects is provided below: Project A Project B Project C NPV $10,000 $5,000 - $1,000 IRR 10% 15% 15% WACC 8% 12% 16% If these projects were independent, which project(s) would be accepted? Why? If these projects were mutually exclusive, which project(s) would be accepted? Why?
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