# Two mutually exclusive projects have projected cash flows as follows: a. Determine the internal rate of return for each project.

## Question:

a. Determine the internal rate of return for each project.

b. Determine the net present value for each project at discount rates of 0, 5, 10, 20, 30, and 35 percent.

c. Plot a graph of the net present value of each project at the different discount rates.

d. Which project would you select? Why? What assumptions are inherent in your decision?

What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Internal Rate of Return

Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...

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**Related Book For**

## Fundamentals Of Financial Management

**ISBN:** 9780273713630

13th Revised Edition

**Authors:** James Van Horne, John Wachowicz

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