Apex Co. has $100,000 available for long-term investment. Which projects should be selected from the list below? $\begin{array}{ccccc}
\text { Proiect } & \text { Cost } & \text { IRR } & \text { NPV } & \text { Profitability Index }\
\hline1 & \$ 60,000 & 16 \% & \$ 3,413 & 1.057 \
2 & 40,000 & 20 \% & 7,563 & 1.190 \
3 & 40,000 & 24 \% & 8,036 & 1.201 \
4 & 20,000 & 14 \% & 1,313 & 1.066 \
5 & 60,000 & 18 \% & 14,583 & 1.243
\end{array}$
.243
A) 4 and 5
B) 2, 3, and 4
C) 3 and 5
D) 2 and 5

Question

Apex Co. has $100,000 available for long-term investment. Which projects should be selected from the list below? $\begin{array}{ccccc}
\text { Proiect } & \text { Cost } & \text { IRR } & \text { NPV } & \text { Profitability Index }\
\hline1 & \$ 60,000 & 16 \% & \$ 3,413 & 1.057 \
2 & 40,000 & 20 \% & 7,563 & 1.190 \
3 & 40,000 & 24 \% & 8,036 & 1.201 \
4 & 20,000 & 14 \% & 1,313 & 1.066 \
5 & 60,000 & 18 \% & 14,583 & 1.243
\end{array}$
 .243
A) 4 and 5
B) 2, 3, and 4
C) 3 and 5
D) 2 and 5

Quizplus · Accepted Answer

Projects 3 and 5 have the highest NPVs and profitability indexes, so they should be selected.

Apex Co Has $100,000 Available for Long-Term Investment 243 A) 4 and 5 B) 2, 3, and 4

Apex Co Has $100,000 Available for Long-Term Investment 243
A) 4 and 5
B) 2, 3, and 4