Question: Make a decision on the following projects based on the limited information given. . Project P costs $10,000 to implement and has a payback period
Make a decision on the following projects based on the limited information given.
.
Project P costs $10,000 to implement and has a payback period of 6.7 years. If your company only accepts projects that pay for themselves within 7 years, would you accept or reject this project? Why?
b.
The NPV of Project M is $101 and the NPV of Project Q is $172. Assuming the projects are not mutually exclusive, which project would you accept, if any? c.
The IRR of Project R is 10% and the IRR of project T is 11%. If the hurdle rate is
14%, which project would you accept, if any?
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