XYZ, Inc. is evaluating several capital budgeting projects which are summarized in the table below. The cost of capital for XYZ is 8%. Project A B C D NPV $1,000 $1,500 $1,200 ($400) IRR 25% 12% 15% 5% Payback Period (years) 4.0 3.0 2.0 1.5 If these projects are mutually exclusive, then XYZ should accept project(s) Question 5 options: A B C D
XYZ, Inc. is evaluating several capital budgeting projects which are summarized in the table below. The cost of capital for XYZ is 8%. Project A B C D NPV $1,000 $1,500 $1,200 ($400) IRR 25% 12% 15% 5% Payback Period (years) 4.0 3.0 2.0 1.5 If these projects are mutually exclusive, then XYZ should accept project(s) Question 5 options: A B C D
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
Problem 1PS
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XYZ, Inc. is evaluating several capital budgeting projects which are summarized in the table below. The cost of capital for XYZ is 8%.
| Project |
A |
B |
C |
D |
|
$1,000 |
$1,500 |
$1,200 |
($400) |
|
|
25% |
12% |
15% |
5% |
|
| Payback Period (years) |
4.0 |
3.0 |
2.0 |
1.5 |
If these projects are mutually exclusive, then XYZ should accept project(s)
Question 5 options:
|
|
A |
|
|
B |
|
|
C |
|
|
D |
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