Question: Vandelay Industries is considering two project alternatives. The first project costs $24.000 to start today and will generate cashflows of $9,000 for the next three
Vandelay Industries is considering two project alternatives. The first project costs $24.000 to start today and will generate cashflows of $9,000 for the next three years. The second project costs $30,000 to start today and will generate a cashflow of $28,000 for one year and cashflows of $1,700 for three additional years. Assume a required return of 7%. What is the NPV and IRR of the first project? What is the NPV and IRR of the second project? Which project should be chosen? do by hand show each setp
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