The required payback period

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1. A project has an NPV = $500 while it has a 12% IRR and a Payback Period of 3 years. The required rate of return is 10% and the required Payback Period is 2 years.

rejected on the basis of IRR.

accepted on the basis of NPV.

accepted on the basis of Payback Period.

all of the above

2. Project A has an NPV of $50, Payback Period of 5 years and IRR of 14%. Project B has an NPV of $80, Payback Period of 7 years and IRR of 12%. The projects are mutually exclusive.

Accept A

Accept B

Accept both projects

Reject both projects

Reference no: EM131518838

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