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Which intern report has the error

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Problem - The CFO of Horatio's Hotels gave three college interns three different independent projects to evaluate. Following are the results of their analyses:

Intern's Name

Project's Life

NPV

IRR

Discounted Payback

Decision

Albert

7 years

$5,300

12.0%

6.8 years

Accept

Josie

6 years

(1,800)

8.0%

5.8 years

Reject

Kenny

10 years

4,500

10.0%

9.6 years

Accept

The CFO agrees with the final accept/reject decision that each intern made. But she spotted an error in the numbers reported by one of the interns.

Required -

(a) Which intern's report has the error?

(b) Does the information given here provide an indication of the firm's required rate of return? Explain your answers.

Reference no: EM132699447

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