Question: A firm is considering two projects, A and B. Each project will last for 4 years. The projects are MUTUALLY EXCLUSIVE, The projected cash flows

A firm is considering two projects, A and B. Each project will last for 4 years. The projects are MUTUALLY EXCLUSIVE, The projected cash flows for each project are shown below: Year 1 2 3 Project A -18.00 9.00 9.00 7.00 4.00 Project B -30.00 9.00 11.00 11.00 13.00 The cost of capital facing the firm is 9.00%. What is the NPV of project A at the cost of capital? Submit Answer format: Currency: Round to: 2 decimal places. What is the NPV of project B at the cost of capital? Submit Answer format: Currency: Round to: 2 decimal places. The projects are mutually exclusive. Using the NPV decision rule, what is your decision based on the results of part A and part B? (A, B, BOTH, or NONE) Submit Answer format: Text What is the IRR of project A? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) What is the IRR of project B? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Assume that the projects are MUTUALLY EXCLUSIVE. Which project would the IRR rule tell you to select? (A, B, BOTH, NONE) Submit Answer format: Text
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