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.
- 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%?
- 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%.
- What is the payback period of each project? Please analyse if in general decision based on payback is consistent with decision based on NPV.
- 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?
- 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.
- 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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