Question: Fin 401 is considering two projects. Its WACC is 10%. What is NPV (net present value) of Project A? What is IRR (Internal Rate of

Fin 401 is considering two projects. Its WACC is 10%.

What is NPV (net present value) of Project A?

What is IRR (Internal Rate of Return) of Project A?

Project A

Project B

Year 0 (investment)

-1000

-2000

Year 1

500

400

Year 2

600

-500

Year 3

700

3000

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