Question
1. NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 12?%,
1. NPV and IRR analysis of projects
Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 12?%, has estimated its cash flows as shown in the following
table .
(Click on the icon here into a spreadsheet.) in order to copy the contents of the data table below Initial investment Project A $130,000 Project B $97,000 (CFO) Year (t) Cash inflows (CFt) 12345 $20,000 $55,000 $40,000 $30,000 $40,000 $15,000 $50,000 $25,000 $55,000 $20,000
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Step: 1
Lets calculate the Net Present Value NPV and Internal Rate of Return IRR for both Project A and Proj...
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
