Analyze the given projects for a start-up company

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Reference no: EM131982212

Question: You have just been hired to analyze the following projects for a start-up company. The CEO of your company has asked you to rank the projects and recommend the four best that the company should accept.

In this assignment, only the quantitative considerations are relevant. No other project characteristics are deciding factors in the selection, except that management has determined that projects 7 and 8 are mutually exclusive. All projects are believed to similarly risky. The firms' weighted average cost of capital has never been estimated. In the past, analysts have simply assumed that 10% was an appropriate discount rate (although certain officers of the company have recently asserted that the discount rate should be much higher).

To stimulate your analysis, consider the following questions:

Rank the projects using IRR.

Reference no: EM131982212

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