You have just started your summer Internship, and your boss asks you to review a recent analysis that was done to compare three alternative proposals to enhance the firm’s manufacturing facility. You find that the prior analysis ranked the proposals according to their
Suppose the appropriate cost or capital for each alternative is 10%. Using this information determine the NPV or each project. Which project should the firm choose?
Why is ranking the projects by their IRR not valid in this situation?
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Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
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