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9.4 Better Health Inc. is evaluating two capital investments, each of which requires an up front (Year 0) expenditure of $1.5 million. The projects are
9.4 Better Health Inc. is evaluating two capital investments, each of which requires an up front (Year 0) expenditure of $1.5 million. The projects are expected to produce the following net cash inflows: Year Project A Project B 1 $500,000 $2,000,000 2 $1,000,000 $1,000,000 3 $2,000,000 $600,000 A) What is each project's IRR? B) What is each projects NPV if the opportunity cost of capital is 10%? 5%? 15%
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