You are the CFO of Chemical Planting Corp. The company has a required rate of...
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Finance
You are the CFO of Chemical Planting Corp. The company has a required rate of return of 9%, inflation is 5%, and the risk rate is 1%. Your are evaluating two independent projects: Project Chromium has an IRR of 12.6% and Project Strontium has an NPV of $2,512. Which project(s) should you accept?
Multiple Choice
-Accept Chromium only
-Accept Strontium only
-accept both chromium and Strontium
-Reject both projects
-No decision can be made because you cannot compare two projects that mix IRR and NPV.
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