Question: You are considering two investment projects A, B with initial investment $ 100,000 and. Cash flows for investment A at the end of each year
You are considering two investment projects A, B with initial investment $ 100,000 and. Cash flows for investment A at the end of each year ; $200,000, $400,000, $400,000, $400,000 and $600,000. Cash flows for investment B at the end of each year; $100,000, $100,000, $100,000 , $800,000 and one million. The required rate of return for both projects is 10%. Internal Rate of Return is:
elect one:
a. 24.21% for investment B and 19.95% for investment A
b. 24.21% for investment A and 16.95% for investment B
c. 20.51% for investment A and 19.95% for investment B
d. 24.21% for investment A and 19.95% for investment B
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