Question: Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown as follows. The required rate of return on projects of

Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 11 percent, and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three and a half years, respectively. Time 0 1 2 3 -2,000 500 800 1,300 Project A Cash flow Project B Cash flow - 1,500 600 1000 500 The NPV for project Ais The NPV for project is (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively. Time 0 1 2 3 4 5 Cash flow -200,000 60,000 85,000 53,000 32,000 11,000 Calculate the IRR (The unit is already in percentage. For example, enter 3.50 for 3.50%. Round your answers to 2 decimal places)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
