The Following Data Was Given for Three Projects Being Considered

question 3

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.
$\begin{array}{llcc}\text { Project } & \text { IRR } & \text { NPV } & \text { Payback } \\\text { A } & 16 \% & \$ 18,000 & 7 \text { yrs }\\\text { B } & 18 \% & \$ 100,000 & 5 \text { yrs } \\\text { C } & 15 \% & \$ 95,000 & 10 y \mathrm{rs}\end{array}$
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.