Question: Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRRs of each investment
Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRRs of each investment are given below for each option. Given that interet is 20%, find A and B. Which project you selecta Project 1/) Project 215) -20450 Year 0 1 -20000 18900 B 7000 0,22 5227 48 2. 3 IRR A 0.24 Select one: O a. A=26000, B=1000, Select Project 2 O b. A=11600, B=2000, Select Project 2 O c. A=10000, B=10000. Select Project 1 O d. A-22000, B=8000, Select Project 2 O e. A=8000, B=9000, Select Project 1 O f. A=4300, B=6000, Select Project 1
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