Capital Budgeting Case Your company is thinking about acquiring another corporation. You have two choicesâ€”the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data:
a.A 5-year projected income statement
b.A 5-year projected cash flow
c.Net present value (NPV)
d.Internal rate of return (IRR)
e.Based on items (a) through (d), which company would you recommend acquiring?