Question: A Company is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 15%. a. What
A Company is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 15%. a. What is the NPV for Project Y? b. What is the NPV for Project Z? c. What is the IRR for Project Y? d. What is the IRR for Project Z? e. Which Project, if any, should you choose?
\begin{tabular}{|l|l|l|} \hline Time & Project Y & Project Z \\ \hline 0 & $(420.00) & $(950.00) \\ \hline 1 & $(572.00) & $270.00 \\ \hline 2 & $(189.00) & $270.00 \\ \hline 3 & $(130.00) & $270.00 \\ \hline 4 & $1,300.00 & $270.00 \\ \hline 5 & $720.00 & $270.00 \\ \hline 7 & $(225.00) & $270.00 \\ \hline \end{tabular}
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