Frazier Fudge, Inc. is considering 2 mutually exclusive projects with the following cash flows. Which project should
Question:
Frazier Fudge, Inc. is considering 2 mutually exclusive projects with the following cash flows. Which project should be accepted? Assume a cost of capital of 10%.
Years Project X Project Y
0 ($350) ($350)
1 $130 $200
2 $150 $120
3 $180 $120
a. Project X because NPV is $27.4
b. Project Y because NPV is $31
c. Project X because IRR is 13.7%
d. Project Y because IRR is 12.2%
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Pearson Edexcel A Level Mathematics Pure Mathematics Year 2
ISBN: 9781292183404
1st Edition
Authors: Greg Attwood, Jack Barraclough, Ian Bettison, David Goldberg, Alistair Macpherson, Joe Petran