Question: A company is comparing two mutually exclusive projects, whose details are given below. The companys cost of capital is 12 per cent Year Project X
A company is comparing two mutually exclusive projects, whose details are given below. The companys cost of capital is 12 per cent
| Year | Project X | Project Y |
| 0 | (150,000) | (152,000) |
| 1 | 30,000 | 40,000 |
| 2 | 25,000 | 35,000 |
| 3 | 30,000 | 30,000 |
| 4 | 35,000 | 27,000 |
| 5 | 40,000 | 25,000 |
Using the internal rate of return method, which project should be accepted?
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