Question: Projects A and B are mutually exclusive. Project A has cash flows of -$10,000 (negative $10,000); $5,100; $3,400; and $4,500 for years 0 to 3,
Projects A and B are mutually exclusive. Project A has cash flows of -$10,000 (negative $10,000); $5,100; $3,400; and $4,500 for years 0 to 3, respectively. Project B has cash flows of -$X (negative $X); $4,500; $3,400; and $5,100 for years 0 to 3, respectively. What value for X sets the IRR for both projects equal to each other?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
