Question
4. Given if the following two projects are mutual exclusive, which project would you choose to invest? (use IRR and MIRR to determine the profitability,
4. Given if the following two projects are mutual exclusive, which project would you choose to invest? (use IRR and MIRR to determine the profitability, WACC = 10%)
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
|
| Project A | -1000 | 500 | 100 | 100 | 100 | 500 |
|
| Project B | -800 | 100 | 100 | 500 | 200 | 100 |
|
Would your decision change if the two projects are independent?
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
