Question Description
Need help with my Accounting question – I’m studying for my class.
Project AlphaProject BetaNPV$34,670$1,500IRR (required rate of return is 10%)12.4%10.6%Payback Period6 years2 years
The best choice is Project Alpha. The net present value and the internal rate of return look like they would make the decision easy for financial managers.
1) What about the economic state of the country at the time?
2) Do you think that it would have any effect on choosing one project over the other?
3) Do you think there are any other circumstances where Project Beta would be a better choice though?
Explanation & Answer:
3 Questions
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