Connor Corporation is considering two projects $($see below$).$ For your analysis, assume these projects

are mutually exclusive with a required rate of return of $10\%.$

Compute the following for each project:

$,$ NPV $($net present value$)$

PI $($profitability index$)$

IRR $($internal rate of return$)$

Based on your analysis, answer the following questions :

Which is the best choice? Why?

Which project should be selected and why? If the projects had the same IRR amounts but

different NPV totals, then how would you know which project to select? Explain.

Financial Management

Unit VIII Assignment

What would happen if both projects had negative NPV totals? Which project would you choose?

What do negative NPVs indicate? Explain.

Should we also use the payback method to assist us in project selection? Why or why not?

Explain.