Question: You are considering the following three projects. A & B are mutually exclusive while C is independent. Following are their expected cash flows year project
You are considering the following three projects. A & B are mutually exclusive while C is independent.
Following are their expected cash flows
| year | project A | Project B | Project C |
| 0 | -60,000.00 | -40,000.00 | -20,000.00 |
| 1 | 0 | 40,000.00 | 35,000.00 |
| 2 | 82,000.00 | 40,000.00 | 30,000.00 |
| 3 | 60,000.00 | 20,000.00 | 2,000.00 |
| 4 | 20,000.00 | 10,000.00 | -40,000.00 |
Prepare a table showing the relationship between discount rate and npv for all the three projects. Use the same table to plot NPV profile all three projects. Your discount rate should extend to include the heights IRR for all three projects.
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