Mainstream Inc. uses multiple methods to determine which project to select. When evaluating...
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Mainstream Inc. uses multiple methods to determine which project to select. When evaluating its latest project, the development of an electric engine, the results of the multiple methods were: Net Present Value = a negative amount of $(12,458) Internal Rate of Return = 12.86% (required return must be 11.4%) Payback Period = 3.58 years (Payback Period must be less than 4 years)
Required: a) Should Mainstream Inc. accept or reject the project to develop the electric engine? b) Why?
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