Capital Budgeting Criteria

This challenge will focus on capital budgeting criteria.

For Tasks 1–6, you are comparing three projects: I, II, and III. You have learned about NPV, IRR, PI, and EAA. Follow the instructions to calculate these capital budgeting criteria for the three projects and use the criteria to make a decision on whether to accept the projects or not.

For Tasks 8–11, you are comparing three projects: X, Y, and Z. Complete the tasks and answer the three questions based on the information given in each question and your calculations.

For Tasks 12–19, you are given three projects in Cash Flow Table 2: A, B, and C. You are going to examine the NPV relationship between Projects A and B first, and then you will examine how the internal rate of return is affected by having multiple sign changes in the cash flows.