Capricorn Industries Ltd Is Considering Three Mutually Exclusive Projects

question 32

Multiple Choice

Capricorn Industries Ltd is considering three mutually exclusive projects.Their costs and cash flows are: If Capricorn's required rate of return is 14%,which project should the company choose?

• A)Project A
• B)Project B
• C)Project C
• D)None of the projects

---

Definitions:

Growth

A key objective for businesses and economies, referring to an increase in capacity, value, or size, often measured by metrics such as GDP for economies and sales revenues for businesses.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered but not yet paid for.

Inventory

Refers to the goods and materials a business holds for the ultimate goal of resale.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.