Question: Question 4 4 pts Consider two mutually exclusive projects with the following cash flows: Project S is a 4 year project with initial (time 0)
Question 4 4 pts Consider two mutually exclusive projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project Lis a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 400, 900, 1300, and 1500 respectively. Assuming a 5% cost of capital, compute the IRR on the incremental cash flows of Project L - Project S- this is the crossover point. 13.11% 8.77% 11.38% 9.55% 8.11% Question 4 4 pts Consider two mutually exclusive projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project Lis a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 400, 900, 1300, and 1500 respectively. Assuming a 5% cost of capital, compute the IRR on the incremental cash flows of Project L - Project S- this is the crossover point. 13.11% 8.77% 11.38% 9.55% 8.11%
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