-Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company.Assume an interest rate of 5%.Which project should the company choose if they want to maximize their return?
A) Project A
B) Project B
C) Project C
D) Cannot be determined

Question

-Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company.Assume an interest rate of 5%.Which project should the company choose if they want to maximize their return?
A) Project A 
B) Project B 
C) Project C 
D) Cannot be determined

Quizplus · Accepted Answer

The company should choose the project with the highest net present value (NPV) when discounted at the given interest rate. Project C has the highest discounted cash flows, indicating it will provide the maximum return.

-Table 101 Shows the Cash Flows and Discounted Cash Flows for for Three