Question: Two projects being considered are mutually exclusive and have the following projected cash flows: (Compute both NPV and IRR). The cost of capital is 10%.
Two projects being considered are mutually exclusive and have the following projected cash flows: (Compute both NPV and IRR). The cost of capital is 10%.
| Year | Cash Flow A | Cash Flow B |
| 0 | -$50,000 | -$50,000 |
| 1 | $15,625 | $0 |
| 2 | $15,625 | $0 |
| 3 | $15,625 | $0 |
| 4 | $15,625 | $0 |
| 5 | $15,625 | $99,500 |
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