Question
A firm is considering two projects, A and B. Each project will last for 4 years. The projects are MUTUALLY EXCLUSIVE. The projected cash flows
A firm is considering two projects, A and B. Each project will last for 4 years. The projects are MUTUALLY EXCLUSIVE. The projected cash flows for each project are shown below:
Year 0 1 2 3 4
Project A -18.00 8.00 7.00 6.00 4.00
Project B -30.00 10.00 11.00 11.00 15.00
The cost of capital facing the firm is 7.00%. What is the IRR of project B?
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Pricing In General Insurance
Authors: Pietro Parodi
2nd Edition
0367769034,1000860833
