Refer to the table below,which shows the results of payback,net present value,and internal rate of return analysis of four projects.Which is preferred by the net present value criterion?
$$\begin{array} { | l | c | c | c | c | }
\hline{ } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \text { Payback } & 3 & 5 & 8 & 5 \
\hline \text { NPV } & \$ 67.95 & \$ 200.96 & \$ 256.78 & \$ 669.85 \
\hline \text { IRR } & 12.59 \% & 11.81 \% & 10.93 \% & 11.81 \% \
\hline
\end{array}$$
A)Project A
B)Project B
C)Project C
D)Project D

Question

Refer to the table below,which shows the results of payback,net present value,and internal rate of return analysis of four projects.Which is preferred by the net present value criterion?
$$\begin{array} { | l | c | c | c | c | } 
\hline{ } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \text { Payback } & 3 & 5 & 8 & 5 \
\hline \text { NPV } & \$ 67.95 & \$ 200.96 & \$ 256.78 & \$ 669.85 \
\hline \text { IRR } & 12.59 \% & 11.81 \% & 10.93 \% & 11.81 \% \
\hline
\end{array}$$
A)Project A
B)Project B
C)Project C
D)Project D

Quizplus · Accepted Answer

Project D is preferred by the net present value (NPV) criterion because it has the highest NPV of $669.85.

Refer to the Table Below,which Shows the Results of Payback,net