The Following Data Was Given for Three Projects Being Considered

question 43

Multiple Choice

The following data was given for three projects being considered by Manosteel Ltd. Only one project can be accepted due to funding limitations. $\begin{array}{llcc}\text { Project } & \text { IRR } & \text { NPV } & \text { Payback } \\\text { A } & 16 \% & \$ 18,000 & 7 \mathrm{yrs} \\\mathrm{B} & 18 \% & \$ 100,000 & 5 \mathrm{yrs} \\\mathrm{C} & 15 \% & \$ 95,000 & 10 \mathrm{yrs}\end{array}$ Which project is the best given that Manosteel's required rate of return is 14%?

• A)Project A.
• B)Project B.
• C)Project C.
• D)All projects should be accepted, as all have a positive Net Present Value and an Internal Rate of Return greater than the required rate of return.

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Definitions:

Sending Radioactive Wastes

The act of transporting and disposing of waste materials that contain radioactive substances, requiring specialized handling to minimize environmental and health risks.

Converting Radioactive Wastes

The process of treating radioactive waste materials to reduce their volume, radioactivity, or hazard to the environment and public health, often involving encapsulation or immobilization.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, derived from the decomposed remains of plants and animals, used primarily for energy.

Subsidies

Financial support provided by governments to lower the cost of goods and services or to support industries seen as vital to the economy.