Question
#1 EXPECTED NET CASH FLOWS: Year Project A Project Project B 0 )$400 $650 1 )528 210 2 )219 210 3) 150 210 4) 1,100
#1
EXPECTED NET CASH FLOWS:
Year Project A Project Project B
0 )$400 $650
1 )528 210
2 )219 210
3) 150 210
4) 1,100 210
5 ) 820 210
6) 990 210
7) 325 210
A) What is each projects IRR?
B) If each projects cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
