Question
A company has a 9 percent WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following net cash flows: Yr
A company has a 9 percent WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following net cash flows:
Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7
Project A -$280 -$385 -$199 -$110 $700 $500 $950 -$250
Project B -$450 $144 $144 $144 $144 $144 $144 $0
a. What is each projects NPV?
b. What is each projects IRR?
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
