Question
DEF Corporation is evaluating two projects with the following projected cash flows. The required return on investment is 12%. Year Project C1 Project D1 0
DEF Corporation is evaluating two projects with the following projected cash flows. The required return on investment is 12%.
Year | Project C1 | Project D1 |
0 | -$200,000 | -$250,000 |
1 | $70,000 | $80,000 |
2 | $75,000 | $85,000 |
3 | $80,000 | $90,000 |
4 | $90,000 | $100,000 |
a. Determine the internal rate of return (IRR) for each project. b. Compute the net present value (NPV) and decide which project should be pursued.
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College Accounting Chapters 1-27
Authors: James A. Heintz, Robert W. Parry
22nd Edition
130566616X, 978-1305666160
