Assignment Help-Introduction To Finance
Bitforth Co. is considering two projects, but can afford only one. They require a 15% return on their investment. Show your work for each step. (15 marks)
YearProject A cashflowProject B cashflow0-$350,000-$50,000145,00024,000265,00022,000365,00019,5004440,00014,600
Using the payback method, which project would you choose? Why?
Using the NPV method, which project would you choose? Why?
Using the IRR method, which project would you choose? Why?
If you apply the profitability index, which project would you choose? Why?
Which project should you choose? Why
