Question
4. Consider the following two mutually exclusive projects. Time Project A Project B 0 -$300 -$405 1 -$387 $134 2 -$193 $134 3 $100 $134
4. Consider the following two mutually exclusive projects.
Time Project A Project B
0 -$300 -$405
1 -$387 $134
2 -$193 $134
3 $100 $134
4 $600 $134
5 $600 $134
6 $850 $150
7 $180 $284
What is each project's payback, IRR and NPV with a cost of capital of 12%? Which project should be selected?
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
