Question: a firm must choose between two mutually exclusive projects, a & b. project a has an initial cost of $10000. its projected net cash flows
a firm must choose between two mutually exclusive projects, a & b. project a has an initial cost of $10000. its projected net cash flows are $800, $2000, $3000, $4000, and $5000 at the end of years 1 through 5, respectively. project b has an initial cost of $14000, and its projected net cash flows are $7000, $5000, $3000, $2000, and $1000 at the end of years 1 through 5, respectively. the irrs of projects a & b are, respectively:
9.92%; 10.88%
8.75%; 9.05%
9.92%; 12.83%
7.55%; 9.05%
11.44%; 12.83%
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
