Question: 17. Consider the following projects, for a firm using a discount rate of 10%: Project A B D NPV $200,000 $200,001 $60,000 $(235,000) IRR
17. Consider the following projects, for a firm using a discount rate of 10%: Project A B D NPV $200,000 $200,001 $60,000 $(235,000) IRR 12.2% 11% 10.1% 9% If the projects are independent, which, if any, project(s) should the firm accept? PI 1.04 1.01 1.61 .95 18. Consider the following projects, for a firm using a discount rate of 10%: Project A IRR 12.2% NPV PI $200,000 1.04. B $200,001 11% 1.01 C $60,000 10.1% 1.61 D $(235,000) 9% .95 If the projects are mutually exclusive, which, if any, project(s) should the firm accept?
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