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Which projects should the firm implement

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Reference no: EM131013255

Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000. A summary of key data about the proposed projects follows.

PV of Inflows

Project Initial Investment IRR of 20%

A $3,000,000 21% $3,050,000

B $9,000,000 25% $9,320,000

C $1,000,000 24% $1,060,000

D $7,000,000 23% $7,350,000

1. Use the NPV approach to select the best group of projects.

2. Use the IRR approach to select the best group of projects.

3. Which projects should the firm implement?

Reference no: EM131013255

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