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Acroe Trading Pty Ltd A) 2 and 5
B) 4 and 5
C) 2

Question 72

Multiple Choice

Acroe Trading Pty Ltd. has $100,000 available for long-term investment. Which projects should be selected from the list below?  Project12345 Cost $60,00040,00040,00020,00060,000 IRR 16%20%24%14%18%NPV$3,4137,5638,0361,31314,583 Profitability Index 1.0571.1901.2011.0661.243\begin{array}{c}\begin{array}{c}\underline{\text { Project} } \\ 1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\underline{\text { Cost }}\\\$ 60,000\\40,000 \\40,000 \\20,000 \\60,000\end{array}\begin{array}{c}\underline{\text { IRR }} \\16 \% \\20 \% \\24 \% \\14 \% \\18 \%\end{array}\begin{array}{c}\underline{\mathrm{NPV}}\\\$ 3,413 \\7,563 \\8,036 \\1,313 \\14,583 \end{array}\begin{array}{c}\underline{\text { Profitability Index } }\\ 1.057 \\1.190 \\1.201 \\1.066 \\1.243\end{array}\end{array}


A) 2 and 5
B) 4 and 5
C) 2, 3, and 4
D) 3 and 5

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