Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0
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Question:
Consider the following two mutually exclusive projects:
Year | Cash Flow (A) | Cash Flow (B) | |||||
0 | –$ | 350,000 | –$ | 50,000 | |||
1 | 45,000 | 24,000 | |||||
2 | 65,000 | 22,000 | |||||
3 | 65,000 | 19,500 | |||||
4 | 440,000 | 14,600 | |||||
Whichever project you choose, if any, you require a 15% return on your investment.
a-1. What is the payback period for each project?
b-1. What is the discounted payback period for each project?
What is the NPV for each project?
What is the IRR for each project?
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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