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Narion, Inc. has a 20% required rate of return. Three managers have presented three potential projects...

Narion, Inc. has a 20% required rate of return. Three managers have presented three potential projects to increase income over the next ten years, each with their preferred measure. Project A was reported to have an NPV of $2,460. Project B was reported with an IRR of 18%. Project C was reported to have a payback period of 23 years. With which of these projects should Narion move forward?

Project B

All three sound great!

Project C

Project A
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Answer #1
Project A should be selected as the Net Present Value(NPV) is positive which indicates that the rate earned on project exceeds the required rate of return.
Project B should not be accepted as IRR is less than 20%
Project C should not be selected as payback period is very long.
Option D Project A is correct
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