You know your assistant calculate the npvs correctly the

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You know your assistant calculate the NPV's correctly. The NPV is after allowing for the outlay. Here are data for five projects.

Projects

Outlay

NPV

@Discount Rate

IRR

A

-$3.6

$11.2

15%

24.2%

B

-$8.9

$13.6

18%

17.1%

C

-$5.0

$4.2

12%

26.3%

D

-$4.2

$5.6

20%

27.9%

E

-11.0

$14.7

16%

22.0%

Assume correct discount rate used and NPV calculated correctly.

a. Which of the above projects is perceived as having the mostrisk?

b. Explain your answer to part a (please provide detailedexplanation to help me understand)

c. If project A and B are mutually excusive, whichone should you take?

Reference no: EM13481762

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