Question 2:
Based on the information provided below, which project would you recommend for being pursued? Project I, with BCR (Benefit Cost ratio) of 1:1.6; Project II, with NPV of US $ 500,000; Project III, with IRR (Internal rate of return) of 15% Project IV, with opportunity cost of US $ 500,000.
Project I, with BCR (Benefit Cost ratio) of 1:1.6; Project II, with NPV of US $ 500,000; Project III, with IRR (Internal rate of return) of 15% Project IV, with opportunity cost of US $ 500,000.
A. Project I B. Project III C. Either Project II or IV D. Can not say from the data provided