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?
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