Question: 3. Projects A and B are mutually exclusive. Project A has an initial cost of $72,000 and provides cash inflows of $22,000, $35,000, $42,500 and
3. Projects A and B are mutually exclusive. Project A has an initial cost of $72,000 and provides cash inflows of $22,000, $35,000, $42,500 and $12,000. Project B has an initial cost of $25,000 and provides cash inflows of $10,000. $12,000, $22,000, and $5,000 for Years 1 through 4, respectively. The required rate of return for both projects is 11 percent. a. What is the NPV for Project A and Project B? b. What is the IRR for Project A and Project B? c. Which project(s) should be accepted
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
