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What should the manager do

    Assignment Instructions

    Assignment ID: FG133056732

    Question:

    A financial manager receives the analysis of 3 decision rules from two mutually exclusive high risk projects that the firm has been analyzing for months. The required return is 15%, the risk adjusted WACC is 10%, and the Payback Cutoff period is 3.5 years. Based upon the following, what should the Manager do? 

     

     Project A

    Project B 

    Payback

    3.3 years

    4.2 years 

    NPV

    $2,500

     $2,900 

    IRR

    17%

    15%

    Answer choices:

    • Choose project A
    • Choose both Projects 
    • Reject both Projects 
    • There is not enough information to answer this question 
    • Choose project B
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