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You will be evaluating three projects for Hasbro Toys. Hasbro's cost of capital or discount rate is 8%.

The first project (A) will cost $200,000 initially. The project will then return cash flows of $50,000 for 5 years.

The second project (B) will cost $250,000 initially. The project will then return cash flows of $115,000 for the next 2 years and $30,000 for 2 years after that.

The third project (C) will cost $100,000 initially. The project will then return cash flows of $39,000 for 3 years.

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What is Project B's NPV?

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What is Project B's IRR?

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What is Project B's Payback Period?

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What is Project B's PI?

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What is Project C's NPV?

Question

What is Project C's IRR?

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What is Project C's Payback Period?

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What is Project C's PI?

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If all three projects are INDEPENDENT, which project(s) would you ACCEPT?

Project A

Project B

Project C

Projects A and B

Projects A and C

Projects B and C

G) Projects A, B, and C

Question

If all three projects are MUTUALLY EXCLUSIVE, which project(s) would you ACCEPT?

Project A

Project B

Project C

Projects A and B

Projects A and C

Projects B and C

G) Projects A, B, and C