Using the following data for project A and B: ^ Calculate the net present value for each
Question:
Using the following data for project A and B:
^ Calculate the net present value for each project, assuming a cost of capital of 15%.
^ Calculate the internal rate of return for each project.
^ Which project should the ¢rm choose based on using net present value and the internal rate of return?
^ If the cost of capital were to increase to 20%, would project A or B be preferred?
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Related Book For
Business Economics And Managerial Decision Making
ISBN: 9780471486749
1st Edition
Authors: Trefor Jones
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