Consider 4 mutually exclusive projects (project Green, Project Red, Project White, Project Orange) listed in the table below. Based on the information given, which of the 4 projects should be accepted ? All projects last 6 years and have a minimum required rate of return of 8%.

Projects

Criterion Green Red White Orange

Present Worth $22,000 $26,000 $18,000 $29,000

Internal rate of return 16% 12% 15% 13%

External rate of return 14% 10% 13% 11%

Payback period in years 4 3 3 5

Select one:

1. Orange
2. Green
3. Red

4. White