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.

---

Definitions:

Contraries

Statements, ideas, or actions that are opposed to each other; in logic, two propositions are contraries if they cannot both be true but can both be false.

Negated

Made ineffective or invalidated; in logic, a proposition that denies or contradicts another proposition.

Raining

The process of precipitation in the form of water droplets falling from clouds in the atmosphere to the ground.

Not Raining

The condition of the weather where no precipitation is occurring.