The Following Data Was Given for Three Projects Being Considered

question 7

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