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please follow apa and inutructuction cite the resources no plagarism-RP

please follow apa and inutructuction cite the resources no plagarism-RP

Question Description

Consider the cash flows of the following three A, B, C projects.

  1. If the opportunity cost of capital is 11%, and you have unlimited access to the capital, which one(s) would you accept? What would be your action if the cost of capital is 16%?
  2. Suppose that you have limited access to the capital and you need to choose only one project. Which one would you choose? The discount rate is still 11%.
  3. What is the payback period of each project? Please analyse if in general decision based on payback is consistent with decision based on NPV.
  4. What are the internal rates of return (IRR) on the three projects? Does the IRR rule in this case give the same decision as NPV?
  5. If the opportunity cost of capital is 11%, what is the profitability index for each project? Please analyse if in general decisions based on profitability index is consistent with decisions based on NPV.
  6. What is the most generally accepted measure to choose between the projects? Please justify your answer.

Please explain your answer in detail and provide in-text citations.

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