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

Question

Quizplus · Accepted Answer

Project 2 is preferred because it has the highest Net Present Value (NPV) of $80,000, indicating it is expected to add the most value to the company.

The Columbus Company Has Four Mutually Exclusive Projects with the Following