Question
4. Please solve in Excel; round to 3 decimal places: YEAR CASHFLOW PROJECT A CASHFLOW PROJECT B 0 ($105,000.00) ($105,000.00) 1 $54,000.00 $21,000.00 2 $45,000.00
4. Please solve in Excel; round to 3 decimal places:
| YEAR | CASHFLOW PROJECT A | CASHFLOW PROJECT B | |
| 0 | ($105,000.00) | ($105,000.00) | |
| 1 | $54,000.00 | $21,000.00 | |
| 2 | $45,000.00 | $35,000.00 | |
| 3 | $25,000.00 | $45,000.00 | |
| 4 | $15,000.00 | $60,000.00 |
Hurdle rate =15%
a. What is the IRR for Project A (solve in Excel)?
b. What is the IRR for Project B (solve in Excel)?
c. These projects are mutually exclusive. Which one should you select and why?
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
