Question

Refer to Salon Products in E12-26A. Compute the IRR of each project and use this information to identify the better investment.
In E12-26A.
• Project A costs $272,000 and offers eight annual net cash inflows of $60,000. Salon Products requires an annual return of 14% on projects such as this one.
• Project B costs $380,000 and offers nine annual net cash inflows of $70,000. Salon Products demands an annual return of 12% on investments of this nature.


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  • CreatedApril 30, 2015
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