Consider the following two projects: Year 0 Cash Project Flow -100 -73 A B Year 1...
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Consider the following two projects: Year 0 Cash Project Flow -100 -73 A B Year 1 Year 2 Cash Cash Flow Flow 40 50 30 30 Year 3 Cash Flow 60 30 Year 4 Cash Flow N/A 30 Discount Rate .15 .15 a. What is the internal rate of return (IRR) for Project A? (3 MARK b. What is the internal rate of return (IRR) for Project B? (3 MARKS) c. What is the maximum number of IRRs that could exist for Project B? (1 MARK) d. Which project should you accept? (1 MARK) Consider the following two projects: Year 0 Cash Project Flow -100 -73 A B Year 1 Year 2 Cash Cash Flow Flow 40 50 30 30 Year 3 Cash Flow 60 30 Year 4 Cash Flow N/A 30 Discount Rate .15 .15 a. What is the internal rate of return (IRR) for Project A? (3 MARK b. What is the internal rate of return (IRR) for Project B? (3 MARKS) c. What is the maximum number of IRRs that could exist for Project B? (1 MARK) d. Which project should you accept? (1 MARK)
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a To calculate the internal rate of return IRR for Project A we need to find the discount rate that ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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