Allin Company Is Considering Two Projects

question 12

Multiple Choice

Allin Company is considering two projects. Project W has an investment cost of $15,000 and a present value of net cash inflows of $21,000. Project T has an investment cost of $20,000 and a present value of net cash inflows of $29,000. Due to limited resources, Allin can invest in only one project. What should Allin do?

• A) Invest in Project W
• B) Invest in Project T
• C) Invest in either Project W or Project T because both have positive net present values
• D) The answer cannot be determined

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