The Technology department at Watkins Transit has a budgeted annual cost of $65,000. The department has a capacity to handle 250
1 answer:
You might be interested in
Answer:
b. Accept Project A and reject Project B.
Explanation:
To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.
Project A:
Project A should be accepted.
Project B:
Project B should be rejected.