Question: Data pop-up window table above Based on the NPV criterion, project A should be (accepted, or rejected) because its NPV is (negative, or positive) and

Data pop-up window table above

Based on the NPV criterion, project A should be (accepted, or rejected) because its NPV is (negative, or positive) and project B should be (accepted, or rejected) because its NPV is (negative, or positive).
Based on the PI criterion, project A should be (accepted, or rejected) because its PI is (greater, or less) than 1.00 and project B should be (accepted, or rejected) because its PI is (greater, or less) than 1.00.
Based on the IRR criterion, project A should be (accepted, or rejected) because its IRR is (greater, or less) than the expected rate of return and project B should be (accepted, or rejected) because its IRR is (greater, or less) than the expected rate of return.
Please follow all rules in blue parentheses and answer all of the a., b, and c sub-parts. Thank you.
PROJECT A $60,000 15,000 15,000 15,000 15,000 15,000 15,000 PROJECT B Initial Outlay Inflow vear 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 Inflow year 6 $80,000 16,000 16,000 16,000 16,000 16,000 16,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
