Question: This is a Professional Assignment(APA format 7th edition) Project C0 C1 C2 C3 C4 A -5000 +1000 +1000 +3000 0 B -1000 0 +1000 +2000
This is a Professional Assignment(APA format 7th edition)
| Project | C0 | C1 | C2 | C3 | C4 |
| A | -5000 | +1000 | +1000 | +3000 | 0 |
| B | -1000 | 0 | +1000 | +2000 | +3000 |
| C | -5000 | +1000 | +1000 | +3000 | +5000 |
1. If the opportunity cost of capital is 11%, and you have unlimited access to the capital, which one(s) would you accept? Why did you answer the way you did? Would your response change if the cost of capital is 16%? Why or why not? 2. Suppose that you have limited access to capital and you need to choose only one project. Which one would you choose and why? The discount rate is still 11%. 3. What is the payback period of each project? Please analyze if, in general, a decision based on payback is consistent with a decision based on NPV. 4. What are the internal rates of return (IRR) on the three projects? Does the IRR rule in this?
Note: Please use updated citations and formulas or equations must be shown in a unique way and make sure no plagiarism is shown.
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