Project C and project D are mutually exclusive projects with conventional cashflows. The net present values (NPV) of the projects are calculated at the cost of capital of 10% and 15% and provided below.

Cost of capital	NPV (Project C)	NPV (Project D)
10%	$109,366	$120,756
15%	$57,709	$50,837

Project C has an internal rate of return (IRR) of 22%. Project D has an internal rate of return (IRR) of 19%.

Three companies are interested in investing in the projects. The cost of capital of each company is given below:

Company	Cost of capital
Red	8%
Green	12%
Blue	17%

Provide your advice to each of the companies. (Choose 1 for each company)

Company red should

- Accept only project C

- Accept only project D

- Accept neither

- Require more info. for decision-making

Company green should

- Accept only project C

- Accept only project D

- Accept neither

- Require more info. for decision-making

Company blue should

- Accept only project C

- Accept only project D

- Accept neither

- Require more info. for decision-making