Question: Based on the information provided below, which project would you recommend pursuing? Project I, with BCR (Benefit Cost ratio) of 1:1.6; Project II, with NPV

Based on the information provided below, which project would you recommend pursuing?

Project I, with BCR (Benefit Cost ratio) of 1:1.6;

Project II, with NPV of US $ 500,000;

Project III, with IRR (Internal rate of return) of 15%

Project IV, with opportunity cost of US $ 500,000.

  1. Either Project II or IV

  2. Can not say from the data provided

  3. Project I

  4. Project III

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