Question: HELP NEEDED ASAP* Net present valueUsing a cost of capital of 14%, calculate the Internal Rate of Return (IRR) for each of the independent projects
HELP NEEDED ASAP* Net present valueUsing a cost of capital of 14%, calculate the Internal Rate of Return (IRR) for each of the independent projects shown in the following table and indicate whether each is acceptable,
| Project A | Project B | Project C | Project D | Project E | |||
| Initial investment (CF0) | $26,000 | $500,000 | $170,000 | $950,000 | $80,000 |
| |
| Year (t) | Cash inflows (CFt) | ||||||
| 1 | $4,000 | $100,000 | $20,000 | $230,000 | $0 | ||
| 2 | 4,000 | 120,000 | 19,000 | 230,000 | 0 | ||
| 3 | 4,000 | 140,000 | 18,000 | 230,000 | 0 | ||
| 4 | 4,000 | 160,000 | 17,000 | 230,000 | 20,000 | ||
| 5 | 4,000 | 180,000 | 16,000 | 230,000 | 30,000 | ||
| 6 | 4,000 | 200,000 | 15,000 | 230,000 | 0 | ||
| 7 | 4,000 | 14,000 | 230,000 | 50,000 | |||
| 8 | 4,000 | 13,000 | 230,000 | 60,000 | |||
| 9 | 4,000 | 12,000 | 70,000 | ||||
| 10 | 4,000 | 11,000 | |||||
The internal rate of return (IRR) of project A is ____%.(Round to 2 decimal points.)
Is project A acceptable?(Select the best answer below.)
Yes
No
The internal rate of return (IRR) of project B is ____%. (Round to 2 decimal points.)
Is project B acceptable?(Select the best answer below.)
Yes
No
The internal rate of return (IRR) of project C is ____%. (Round to 2 decimal points.)
Is project C acceptable?(Select the best answer below.)
Yes
No
The internal rate of return (IRR) of project D is ____%. (Round to 2 decimal points.)
Is project D acceptable?(Select the best answer below.)
No
Yes
The internal rate of return (IRR) of project E is ____%. (Round to 2 decimal points.)
Is project E acceptable?(Select the best answer below.)
Yes
No
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