Consider the four capital budgeting projects listed below. The appropriate cost of capital is 12.5%. If these projects are mutually independent and the company is not practicing capital rationing, which one or ones of these four projects shall be accepted?

There can be more than one answer to this question.

	Project A	Project B	Project C	Project D
NPV	$500	$1300	-$20	$740
IRR	25%	13.5%	8.5%	12.8%

Answer choices:

1. Project A
2. Project B
3. Project C
4. Project D