Question: Consider the following two projects: Cash flows Project A Project B C 0 $ 200 $ 200 C 1 80 100 C 2 80 100

Consider the following two projects:

Cash flows Project A Project B
C0 $ 200 $ 200
C1 80 100
C2 80 100
C3 80 100
C4 80

Does the IRR rule in this case give the same answer as NPV?

(yes or No)

If cost of capital is less than Cross-over rate
If cost of capital is equal to or greater than Cross-over rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!