Assignment
Length: 6 pages.
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? 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? Analyze 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? Justify your answer.
Format your assignment according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Table.rar