Which of the following projects below should the firm accept? The firm has a weighted...
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Which of the following projects below should the firm accept? The firm has a weighted average cost of capital of 15% and typically accepts projects that payback in less than two years. Assume projects are mutually exclusive and have normal cash flows. Project A has a net present value of $150,000. Project B has a net present value of $80,000. Project C has a net present value of $350,000, Project D has a net present value of $750,000. Payback period is flawed because it ignores all cash flows that occur after the initial cash outflow is paid. True False
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