Question
1-Consider projects A & B, below; respective NPVs are noted: Project C0 C1 C2 NPV @ 10% A -30,000 21,000 21,000 6,446 B -50,000 33,000
1-Consider projects A & B, below; respective NPVs are noted: Project C0 C1 C2 NPV @ 10% A -30,000 21,000 21,000 6,446 B -50,000 33,000 33,000 7,273 A-Calculate the Internal Rate of Return for each project: IRR(Project A)= IRR(Project B)= B. Which project does the IRR rule suggest? C. Are your IRR findings consistent with the NPV values?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
