1. Given the two projects below, identify which of the two projects are worth pursuing. The required rate of return is 10%. Project A ( 100,000 ) 45,000 45,000 45,000 Project B ( 100,000 ) 75,000 30,000 1,000 Year 1 2 3 Required: Compute for simple payback period, discounted payback period, net present value, profitability index, and internal rate of return.
1. Given the two projects below, identify which of the two projects are worth pursuing. The required rate of return is 10%. Project A ( 100,000 ) 45,000 45,000 45,000 Project B ( 100,000 ) 75,000 30,000 1,000 Year 1 2 3 Required: Compute for simple payback period, discounted payback period, net present value, profitability index, and internal rate of return.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EB: Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two...
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