Question: Totally Serial Enterprises is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below. Year ManBearPig Project Cash Flow
Totally Serial Enterprises is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
| Year | ManBearPig Project Cash Flow | Solar Car Cash Flow |
| 0 | -$100,000 | -$200,000 |
| 1 | 30,000 | 55,000 |
| 2 | 30,000 | 55,000 |
| 3 | 45,000 | 75,000 |
| 4 | 45,000 | 90,000 |
What is ManBearPigs internal rate of return (IRR) at a 12% cost of capital?
| A. | 12.76% | |
| B. | 12.49% | |
| C. | 16.84% | |
| D. | 12.00% | |
| E. | 15.05% |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
