Question: Panhandle Corp. is considering three projects. Each project has an initial outlay of $424,000. Project A is expected to earn $38,000 in year one, $98,000

Panhandle Corp. is considering three projects. Each project has an initial outlay of $424,000.

Project A is expected to earn $38,000 in year one, $98,000 in year two, $65,000 in year three, and $263,000 in year four.

Project B is expected to earn $125,000 per year for four years.

Project C is expected to earn $548,000 in year four.

The WACC is 6%.

Which project provides the best return?

Project B has the best NPV and IRR
Project B has the best NPV and Project C has the best IRR
Project B has the best IRR and Project C has the best NPV
Project C has the best NPV and IRR

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