Project Selection - NPV vs BCR vs IRR vs payback
Submitted by charnelle_beste... on Sun, 05/13/2012 - 19:18
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The answer is Project A
Feedback and explanation to this would be greatly appreciated.
Forums:
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The answer is Project A
Feedback and explanation to this would be greatly appreciated.
admin
Wed, 05/16/2012 - 06:00
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The choice is really only
The choice is really only between A and B, since for C and D there are no hard core numbers so you cannot say for sure if 18% is better than $185K, neither can we conclude if 2 year payback will be better than benifit cost ratio of 1.6
So , Project A sure has $185K NPV, which is unambigous , Project B will need 1 million investment and benefit would be 1.6 Milion . However again we dont know what it will equate to in NPV terms.
So considering B, C, and D are ambigous, by theory of elimination A is right answer.
PMNovice
Fri, 05/18/2012 - 03:10
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Generally speaking, out of
Generally speaking, out of the four methods is Pay back period is most unreliable/inaccurate ?