Question: . Your organization is trying to decide between two projects based on the Net Present Value (NPV). The NPV of Project A is $55,000 and

. Your organization is trying to decide between two projects based on the Net Present Value (NPV). The NPV of Project A is $55,000 and will take 5 years to complete. The NPV of Project B is $95,000 and will take 8 years to complete. Which project should be selected based on the given information? .In the table below indicate in the last column which project you would select (project A or B) based solely on the information in each row. Project B Economic Project A Project A or B? measurement Payback period 19 months 14 months Benefit-cost ratio 2.53 1.42 15% Internal rate of return 19% $105,000 $85,000 Net present value . Which of the following describes what a benefit-cost ratio of 1.6 means? (cost-benefit and benefit-cost terms are often used interchangeably, it is a ratio that is obtained as part of the cost-benefit analysis) ORevenue is 1.6 times the costs OCosts are 1.6 times the profit OThe costs are greater than the benefits OProfit is 1.6 times the costs
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