Question: 3 capital projects as shown below have been analyzed using capital budgeting tools. Project A Net Present value (NPV) $35,918,998 Internal rate of return (IRR)
3 capital projects as shown below have been analyzed using capital budgeting tools.
Project A
Net Present value (NPV) $35,918,998
Internal rate of return (IRR) 72.86%
Payback period 1
Profitability index (PI) 4.59
Project B
Net Present value (NPV) $18,535,239
Internal rate of return (IRR) 80.53%
Payback period 0.73
Profitability index (PI) 3.70
Project C
Net Present value (NPV) $35,648,534
Internal rate of return (IRR) 54.25%
Payback period -0.03
Profitability index (PI) 3.18
Which of these projects is the most viable?
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