Question: A CFO issued a report comparing two competing projects. He concludes that the NPV of project A is 5 higher than the project B. Please
A CFO issued a report comparing two competing projects. He concludes that the NPV of project A is 5 higher than the project B. Please find out the requirement return.
| Year | A | B |
| 0 | -800 | -1,000 |
| 1 | 100 | 100 |
| 2 | 440 | 800 |
| 3 | 1,400 | 1,500 |
| 15.23 percent | ||
| 19.25 percent | ||
| 32.02 percent | ||
| 46.34 percent | ||
| 48.07 percent |
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