Project 1 Payback period = 2 years 9 months NPV = 2,041 APR = 22.08% Project 2

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Project 1

Payback period = 2 years 9 months

NPV = £2,041

APR = 22.08%

Project 2

Payback period = 2 years 10 months

NPV = £3,995

APR = 26.19%

Based on the above, which project is best to invest in?

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Value at Risk The New Benchmark for Managing Financial Risk

ISBN: 978-0071464956

3rd edition

Authors: Philippe Jorion

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Posted Date: Jan 10, 2021 12:41 PM

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Project 1 Payback period = 2 years 9 months NPV = 2,041 APR = 22.08% Project 2

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Expert Answer:

Here Best method is NPV among APR and Payback period In case of NPV We choose projec... View the full answer

Value at Risk The New Benchmark for Managing Financial Risk

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