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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