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Costco is evaluating three projects and will select the one with the highest PI. The company's...

Costco is evaluating three projects and will select the one with the highest PI. The company's cost of capital is 14.5%. Which project should Costco choose?

IRR Investment CF - Y1 CF - Y2 CF - Y3
Project A 11.00% 75,000 35,000 40,000 45,000
Project B 15.00% 90,000 55,000 50,000 43,000
Project C 15.00% 50,000 40,000 25,000 11,000
a.

Project A
b.

Project B
c.

Project C
d.

None of the above

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Expert Solution

jeff jeffy answered 2 years ago
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