The Columbus Company has four mutually exclusive projects with the following information: $$\begin{array} { l r r r r }
& \text { Project 1 } & \text { Project 2 } & \text { Project 3 } & \text { Project 4 } \
\text { NPV } & \$ ( 12,000 ) & \$ 80,000 & \$ 60,000 & \$ 20,000 \
\text { IRR } & 7 \% & 10 \% & 12 \% & 9 \%
\end{array}$$ Which project is preferred?

Question

The Columbus Company has four mutually exclusive projects with the following information: $$\begin{array} { l r r r r } 
& \text { Project 1 } & \text { Project 2 } & \text { Project 3 } & \text { Project 4 } \
\text { NPV } & \$ ( 12,000 ) & \$ 80,000 & \$ 60,000 & \$ 20,000 \
\text { IRR } & 7 \% & 10 \% & 12 \% & 9 \%
\end{array}$$ Which project is preferred?

Quizplus · Accepted Answer

Project 2 has the highest NPV, so it is the preferred project.

The Columbus Company Has Four Mutually Exclusive Projects with the Following