Two projects A and B have the following cashflows: X X2 A -4,000 2,500 3,000 B -2,000
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Two projects A and B have the following cashflows:
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X X2 A -4,000 2,500 3,000 B -2,000 1,200 1,500 1. Find the Payback periods for the two projects. Which project has the shortest payback period? 2. Calculate the Internal Rate of Return on the two projects. Which project has the higher IRR? 3. The discount rate is 10%. How would the NPV rule rank these two projects?
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Related Book For
Lectures On Corporate Finance
ISBN: 9789812568991
2nd Edition
Authors: Peter L Bossaerts, Bernt Arne Odegaard
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