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%. The cash flows for Project A are as follows: Year 0: -$50,450; Year 1: $15,625; Year 2: $15,625; Year 3: $$15,625; Year 4: $15,625; and Year 5: $15,625. The cash flows for Project B are as follows: Year 0: -$50,000; Year 1: $0; Year 2: 0; Year 3: $0; Year 4: $0; and Year 5: $99,500. Group of answer choices Project A NPV = $9,231.04 , IRR = 16.99% ; Project B NPV = $11,781.67 ; IRR = 14.75%. Project A NPV = $10,488.38 , IRR = 18.56% ; Project B NPV = $12,532.88 ; IRR = 19.33%. Project A NPV = $12,934.94 , IRR = 7.67% ; Project B NPV = $9,735.54 ; IRR = 6.12%. Project A NPV = $11,386.53 , IRR = 13.87% ; Project B NPV = $7,796.33 ; IRR = 9.90%
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