Question: Consider the following three projects: YEAR 0 1 2 3 4 5 6 Project A -$1 -$1 -$1 -$1 -$1 $10 $20 Project B

Consider the following three projects: YEAR 0 1 2 3 4 5 6 Project A -$1 -$1 -$1 -$1 -$1 $10 $20 Project B -$500 -$500 $0 $0 50 $0 $500 $600 Project C -$500 $0 $0 $600 $0 $0 $0 Assume an interest rate of 4%, what project should be chosen? What about 9%? What is the IRR for each project? What other factors should you consider?

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To determine the best project to choose we need to calculate the net present value NPV of each project at different interest rates The NPV is calculat... View full answer

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