Question: Question 5 20 Marks Consider the three projects A, B, and C. The cost of capital is 12 percent, and the projects have the following

 Question 5 20 Marks Consider the three projects A, B, and

Question 5 20 Marks Consider the three projects A, B, and C. The cost of capital is 12 percent, and the projects have the following expected cash flows: Project A Project B Project C Now -R150 000-R300 000 -R150 000 End of year 1 120 000 200 000 110 000 End of year 2 80 000 180 000 90 000 Required: 5.1. What is the internal rate of return of the three projects? 5.2. What is the net present value of the three projects? 5.3. If the three projects are independent, which projects should be accepted? 5.4. If the three projects are mutually exclusive, which project should be selected? 5.5. If the total budget for the three projects is limited to R450 000, which projects should be selected

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!