A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of return are as follows: The firm should ________.
A) accept Project 1 and 2, and reject Project 3
B) accept Project 2, and reject Projects 1 and 3
C) accept Project 1, and reject Projects 2 and 3
D) accept Project 3, and reject Projects 1 and 2

Question

A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of return are as follows:  The firm should ________.
A) accept Project 1 and 2, and reject Project 3 
B) accept Project 2, and reject Projects 1 and 3 
C) accept Project 1, and reject Projects 2 and 3 
D) accept Project 3, and reject Projects 1 and 2

Quizplus · Accepted Answer

The Answer of A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of return are as follows:  The firm should ________.
A) accept Project 1 and 2, and reject Project 3 
B) accept Project 2, and reject Projects 1 and 3 
C) accept Project 1, and reject Projects 2 and 3 
D) accept Project 3, and reject Projects 1 and 2

A Firm with a Cost of Capital of 13 Percent