Consider the following mutually exclusive projects, for Oz Corp, a firm using a discount rate of 10%: Project NPV IRR PI A $100,000 10.2% 1.04 B $1 11% 1.11 C $70,000 23% 1.32 D $24,000 13% 1.44 Which...

Consider the followingmutually exclusive projects, for Oz Corp, a firm using a discount rate of 10%:

ProjectNPVIRRPI

A $100,000 10.2% 1.04

B $1 11% 1.11

C $70,000 23% 1.32

D $24,000 13% 1.44

Which project(s) should the firm accept?

A. Project C since it has the highest IRR.

B. Project A since it has the highest positive NPV.

C. Project D since it has the highest PI.

D. All projects since they all have positive NPV.

E. Not enough information to tell since NPV, IRR, and PI yield different rankings.

Jun 05, 2022

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