Question You have two mutually exclusive projects to choose from. Proj. A has an initial cost of
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You have two mutually exclusive projects to choose from. Proj. A has an initial cost of $45,000 and will produce cash flows of $18,000 for 4 years. There is no termination cash flow.
Proj. B has an initial cost of $30,000 and will produce cash flows of $12,000 for 4 years. There is no termination cash flow.
What is the IRR of each project?
Using a discount rate of 15%, what is the NPV of each project?
Which project, or projects, do you decide to do, if any?
3) If this project has an initial investment of $60,000 and we require a 12% return on our investment, what is the IRR and NPV for this project?
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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