Question: Question 5 (2 points) XYZ, Inc. is evaluating several capital budgeting projects which are summarized in the table below. The cost of capital for XYZ

Question 5 (2 points)

XYZ, Inc. is evaluating several capital budgeting projects which are summarized in the table below. The cost of capital for XYZ is 8%.

Project

A

B

C

D
NPV

$1,000

$1,500

$1,200

($400)
IRR

25%

12%

15%

5%
Payback Period (years)

4.0

3.0

2.0

1.5

If these projects are mutually exclusive, then XYZ should accept project(s)

Question 5 options:

A

B

C

D

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