Question
a.Calculate the IRR for each of the projects. b.If the discount rate for all three projects is 10 percent, which project or projects would you
a.Calculate the IRR for each of the projects.
b.If the discount rate for all three projects is 10 percent, which project or projects would you want to undertake?
c.What is the net present value of each of the projects where the appropriate discount rate is 10 percent?
| Project A | Project B | Project C | |
| Year 0 (initial investment) | $(55,000) | $(110,000) | $(400,000) |
| Year 1 | 13,000 | 27,000 | 210,000 |
| Year 2 | 18000 | 27000 | 210000 |
| Year 3 | 19000 | 27000 | 210000 |
| Year 4 | 28000 | 27000 | ---- |
| Year 5 | 33000 | 27000 | ---- |
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Personal Finance
Authors: Jack Kapoor
12th Edition
125996776X, 9781259967764
