Question: steps preferred in excel Consider two mutually exclusive R&D projects that Savage Tech is considering. Assume the discount rate for both projects is 9 percent.
steps preferred in excel
Consider two mutually exclusive R&D projects that Savage Tech is considering. Assume the discount rate for both projects is 9 percent. Project A: Server CPU .13 micron processing project By shrinking the die size to .13 micron, the company will be able to offer server CPU chips with lower power consumption and heat generation, meaning faster CPUs. Project B: New telecom chip project Entry into this industry will require introduction of a new chip for cell phones. The know-how will require a large amount of up-front capital, but success of the project will lead to large cash flows later on Year Project A Project B 0 $665,000866,000 247,000 348,000 352,000 398,000 483,000 332,000 343,000 251,000 176,000 112,000 Complete the following table: (Do not round intermediate calculations. Enter the IRR as a percent. Round your profitability index (PI) answers to 3 decimal places, e.g., 32.161, and other answers to 2 decimal places, e.g., 32.16.) Project A Project B IRR PI
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