The new financial analyst does not like the payback approach (Table 10.3 ) and determines that the firm's required rate of return is 15 percent. Based on IRR, his recommendation would be to ________
A) accept both the projects
B) accept Project A and reject Project B
C) reject Project A and accept Project B
D) reject both the projects
C
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Organizations that create cultures that inspire compassion depend on networks and relationships to provide the scale, scope, customization and speed of response required in times of need
a. True b. False
Calculate EVA for the Gold Division
Stonex Corp, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $6,000,000 and an interest rate of 8%, and equity capital with a market value of $14,000,000 and a cost of equity of 12%. Stonex has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year: Total Assets Current Liabilities Operating Income Blue Div. $9,500,000 $2,500,000 $1,155,000 Gold Div. $10,000,000 $2,400,000 $1,200,000 A) ($57,640) B) ($27,840) C) ($37,340) D) $397,440