Question: You are considering the following mutually exclusive projects: Question 1: Year Project 1 Project 2 0 -43,960 -77,560 1 26,690 36,370 2 17,260 31,360 3
You are considering the following mutually exclusive projects:
Question 1:
| Year | Project 1 | Project 2 |
|---|---|---|
| 0 | -43,960 | -77,560 |
| 1 | 26,690 | 36,370 |
| 2 | 17,260 | 31,360 |
| 3 | 25,870 | 44,850 |
| 4 | 17,460 | 24,360 |
Calculate the designated investment criteria. Assume the required return is 11.30% percent.
| Project 1 | Project 2 | |
|---|---|---|
| NPV | $___ | $___ |
| PP | ___years | ___years |
| IRR | ___% | ___% |
Question 2
Which project should be accepted?
-
Both projects
-
Neither
-
Project 2
-
Project 1
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