Use the following information to answer next three questions:
IO PI IRR LIFE
Pro...
Business, 17.04.2020 00:44 mirandatorres2601
Use the following information to answer next three questions:
IO PI IRR LIFE
Project 1 $300,000 1.12 14.38% 15 years
Project 2 $150,000 1.08 13.32% 6 years
Project 3 $100,000 1.20 16.46% 3 years
Assume that the cost of capital is 12%.
If the firm has unlimited capital and each project is independent, which project(s) should be accepted?
Answers: 3
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