Question: you are considering the following two projects and can only choose one. you cost of capital is 1 0 . 9 % the cash flows
you are considering the following two projects and can only choose one. you cost of capital is the cash flows for the two projects are as follows in millions PROJECT A: year year year year year PROJECT B: year year year year year What is the IRR of BOTH project A and project B seperately? What is the NPV of BOTH project A and B seperately at a cost of capital? At what cost of capital are you indifferent between the two projects?
Finding the cost of capital at which you will be indifferent between the two projects can be solved in two ways. One is to calculate the IRR of the difference in cash flows between the two projects. Using the cash flows from investment A minus the cash flows from investment B PLEASE ONLY SOLVE USING EXCEL. PLEASE ENSURE ACCURACY THANK YOU
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