The Columbus Company Has Four Mutually Exclusive Projects with the Following

question 81

Multiple Choice

The Columbus Company has four mutually exclusive projects with the following information: Which project is preferred?
$\begin{array}{lrrrr}&\text { Project } 1&\text { Project } 2&\text { Project } 3&\text { Project } 4\\\text { NPV } & \$(12,000) & \$ 80,000 & \$ 60,000 & \$ 20,000 \\\text { IRR } & 7 \% & 10 \% & 12 \% & 9 \%\end{array}$

• A)Project 1
• B)Project 2
• C)Project 3
• D)Project 4

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Definitions:

Raw Materials Transactions

Financial exchanges involved in purchasing the basic substances used in production processes.

Manufacturing Overhead

All indirect costs associated with manufacturing, including utilities, rent for the manufacturing facilities, and salaries of non-direct employees.

Raw Materials Transactions

Financial and operational activities related to the acquisition and use of raw materials in the production process.

November

November, which is the month number eleven in the Gregorian calendar.