Question: ONLY ANSWER QUESTION 20 This table gives the cash flows of five different projects. Note that parentheses indicate negative values. If needed, use a 12%
This table gives the cash flows of five different projects. Note that parentheses indicate negative values. If needed, use a 12% cost of capital. Use this informotion to answer the next three questions. 18. If you could take as many of the projects in the table above as you like, which ones would you choose? a. Projects A,C and D only b. Projects A,B and D only c. Projects A, B and E only d. Projects 8, Cand Eonly e. Projects A,C and E only 19. If all these projects are mutualy exclusive so you can choose only one, which one would you choose, and why? a. Project A, because it has the highest IRR b. Project A, because it has the highest NPV c. Project C, because it has the lowest NPV d. Project E, because it has the highest IRR e. Project E, because it has the highest NPV 20. If you had to choose between Project B or Project D, which one would you choose? a. Project D, because it has the lowest EAA b. Project D, because it has the highest NPV c. It doesn't matter since they are both a waste of money d. Project B, because it has the highest NPV e. Project B, because it has the lowest EAA
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