Question: Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project C 0 C 1 C 2 NPV at 12% A 31,000 21,800 21,800
Consider two mutually exclusive projects A and B:
| Cash Flows (dollars) | ||||
| Project | C0 | C1 | C2 | NPV at 12% |
| A | 31,000 | 21,800 | 21,800 | +$5,843 |
| B | 51,000 | 34,000 | 34,000 | +6,462 |
a. Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
