Question: 4. (NPV and IRR)Your division is considering two projects with the following cash flows (in millions): $5 $10 Project A Project B - $25 -
4. (NPV and IRR)Your division is considering two projects with the following cash flows (in millions): $5 $10 Project A Project B - $25 - $20 $10 a. What are the projects' NPVs assuming the discount interest rate is 12%? b. What are the projects' IRRs? 5. (Mortgage)A bank is offering you a loan of $500,000 for 30 years. The stated (nominal) interest rate is 6% per year. The loan will be repaid with equal monthly payments. a. How much is the monthly payment? b. After 10 years, how many payments are left? What will be the loan balance after 10 years
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