To explain BioCom's capital budgeting techniques, Jane has decided to present the cash flows from two recent
Question:
To explain BioCom's capital budgeting techniques, Jane has decided to present the cash flows from two recent proposals: the nano test tube project and the microsurgery kit project. All figures are in thousands of dollars:
Time of Cash Flow | Nano Test Tubes | Microsurgery Kit |
Investment | ($12,000) | ($12,000) |
Year 1 | 2,000 | 5,000 |
Year 2 | 3,000 | 5,000 |
Year 3 | 4,000 | 5,000 |
Year 4 | 5,000 | 5,000 |
Year 5 | 7,000 | 5,000 |
A) Compute the internal rate of return (IRR) for Nano Test Tubes project. Enter the number as a decimal rounded to the nearest hundredth. For example if the answer was 15.2%, enter the answer in blackboard as 0.15.
B)Compute the internal rate of return (IRR) for Microsurgery Kit project. Enter the number as a decimal rounded to the nearest hundredth. For example if the answer was 15.2%, enter the answer in blackboard as 0.15.
Expert Answer:
Calculating IRR for BioComs Projects We cant directly calculate IRR within a textbased responsebut I ... View the full answer
