Question: 16) Consider the following data: flows for the next four years will be $200,000,$100,000,$100,000, and $200,000, respectively. The initial cost of the project will be
16) Consider the following data: flows for the next four years will be $200,000,$100,000,$100,000, and $200,000, respectively. The initial cost of the project will be $300,000, required return is 10%. For making the most robust capital budgeting analysis, which criteria should be used? A) NPV B) IRR C) Payback Rule D) AAR E) Both NPV and IRR, as NPV provides a dollar figure to the present value of cash flows, and IRR may be more intuitive to management, as the IRR analysis results show returns as a percentage. F) None of the above
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