Question: Suppose you were evaluating three projects: Project X, Project Y and Project Z. After performing Payback, Net Present Value and Internal Rate of Return analyses,

Suppose you were evaluating three projects: Project X, Project Y and Project Z. After performing Payback, Net Present Value and Internal Rate of Return analyses, you obtained the following:

Project X Project Y Project Z
payback 4.5 years 5.1 years 4.5 years
NPV 3,211 3,434 3,212
IRR 7.27% 6.87% 7.26%

Which Project would you suggest to management for undertaking? If you aren't comfortable making a recommendation now, what else might you do to help you decide?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!