Question
A CFO issued a report comparing two competing projects. She concludes that the NPV of project A is 50 lower than the project B. Please
A CFO issued a report comparing two competing projects. She concludes that the NPV of project A is 50 lower than the project B. Please find out the requirement return.
| Year | A | B |
| 0 | -800 | -1,000 |
| 1 | 100 | 100 |
| 2 | 440 | 800 |
| 3 | 1,400 | 1,500 |
15.23 percent
19.25 percent
32.02 percent
46.34 percent
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
