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You recently attended a business seminar where one of the clients approached you to give advice about the projects below: REQUIRED: Year 0 1 2 3 4 5 6 7 8 9 10 Cash Flow Project A -$100,000 $10,000 $12,000 $12,000 $30,500 $12,500 $35,000 $20,000 $20,000 $35,000 $25,000 Cash Flow Project B -$100,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $1,000 Cash Flow Project C $1,000,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $2,100,000 A. Given the interest rate is 5.5%, calculate NPV and IRR of projects above. B. Based on NPV and IRR, which project(s) should you choose? Will there be any conflicting problem if only one project can be chosen? You recently attended a business seminar where one of the clients approached you to give advice about the projects below: REQUIRED: Year 0 1 2 3 4 5 6 7 8 9 10 Cash Flow Project A -$100,000 $10,000 $12,000 $12,000 $30,500 $12,500 $35,000 $20,000 $20,000 $35,000 $25,000 Cash Flow Project B -$100,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $1,000 Cash Flow Project C $1,000,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $2,100,000 A. Given the interest rate is 5.5%, calculate NPV and IRR of projects above. B. Based on NPV and IRR, which project(s) should you choose? Will there be any conflicting problem if only one project can be chosen?
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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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