#11

Redo problem 11 with a cost of capital 7.5%. (NPV & IRR) Three projects AB and have free cash flows listed below. The firm has a co of capital of 20%. Calculate the NPV and IRR of AB. and C and determine if these independent projects should be selected: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 -$25,000 $7,000 $6,000 $5,000 $4,000 $3,000 $3,000 $25,000 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 -$25,000 $3,000 $3,000 $4,000 $5,000 $6,000 $7,000