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2.IRR and NPV Analysis for Independent Projects The following investment proposals are independent. Assuming a required rate of return of 10 per cent,and using both

2.IRR and NPV Analysis for Independent Projects

The following investment proposals are independent. Assuming a required rate of return of 10 per cent,and using both the internal rate of return and net present value methods, which of the proposals are acceptable?

Cash Flow

Proposal Year 0 Year 1 Year 2

A -40,000 8,000 48,000

B -40,000 42,000

C -40,000 48,000

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