9–19 Following is information about two independent projects that a company is evaluating: Capital Budgeting Technique Project X Project Y Net Present Value $5,000 $4,950 Internal rate of return 15.5% 17.0% Discounted payback period 5.1 yrs 4.6 yrs (a) Which project(s) should be chosen? Explain why. (b) What can be concluded about the company’s required rate of return, r?

9–19 Following is information about two independent projects that a company is evaluating: Capital Budgeting Technique Project X Project Y Net Present Value $5,000 $4,950 Internal rate of return 15.5%...

9–19 Following is information about two independent projects that a company is evaluating:

Capital Budgeting Technique	Project X	Project Y
Net Present Value	$5,000	$4,950
Internal rate of return	15.5%	17.0%
Discounted payback period	5.1 yrs	4.6 yrs

(a) Which project(s) should be chosen? Explain why. (b) What can be concluded about the company’s required rate of return, r?

Jun 05, 2022