Question: The table below contains information on six potential projects that you could invest in. There are no cash flows after year 4. Assuming that you

The table below contains information on six potential projects that you could invest in. There are no cash flows after year 4. Assuming that you can only pick one, which one should you choose? Select the best answer. Interest Rate (EAR) IRR 120 150 10% Project Project A Project B Project C Project D Project E Project F FCF Forecasts by Year (in $1,000) 0 1 2 3 4 (350) 80 300 (420) 500 90 0 (480) (20) 270 300 350 (500) 150 165 180 510 (375) (25) 150 175 200 (300) 300 200 0 0 10% 10% 12% 12% 12% 23.8% 36.1% 22.7% 27.4% 9.5% 45.7% Payback Period 3 Years 1 Year 3 Years 5 Years 5 Years 1 Year O Project A Project B Project C O Project D O Project E Project F
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