Use the table for the question(s) below.

-If the risk-free interest rate is 10%,then of the four projects listed,if could only invest in two of these projects,which two projects would you select?
A) Minie & Eenie
B) Minie & Meenie
C) Eenie & Moe
D) Eenie & Meenie

Question

Use the table for the question(s) below.
 
-If the risk-free interest rate is 10%,then of the four projects listed,if could only invest in two of these projects,which two projects would you select?
A) Minie & Eenie 
B) Minie & Meenie 
C) Eenie & Moe 
D) Eenie & Meenie

Quizplus · Accepted Answer

A) Eenie & Minie have the highest NPVs
NPV Eenie = -10 + 15 / 1.1 = 3.64
NPV Meenie = 10 - 8 / 1.1 = 2.73
NPV Minie = -15 + 20 / 1.1 = 3.18
NPV Moe = 10 - 15 / 1.1 = -3.64

Use the Table for the Question(s) Below