Three Projects Are Presented to the Manager of the Firm

Essay

Three projects are presented to the manager of the firm with the information in the table. If the projects are mutually exclusive, which of the projects should the firm choose?
$$\begin{array} { | l | l | l | l | } \hline & \text { Project A } & \text { Project B } & \text { Project C } \\\hline \text { Payback Period } & 3 \text { years } & 10 \text { years } & 7 \text { years } \\\hline \text { NPV } & 100,000 & 400,000 & 300,000 \\\hline \text { IRR } & 7 \% & 12 \% & 13 \% \\\hline\end{array}$$