The company has a cost of capital of 10%.
The company has a cost of capital of 10%. The following projects are
mutually exclusive and only the following information is provided. Which should be accepted and justify your answer.
Projects: A B C D
Payback (years) 1 5 2 5
IRR 18% 20% 20% 12%
NPV (millions) $40 $75 $35 $100