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Annie's Land Company has identified the following two mutually exclusive projects, A and B: (Figures below are in thousands) Year zero 1 2 3 4
Annie's Land Company has identified the following two mutually exclusive projects, A and B: (Figures below are in thousands) Year zero 1 2 3 4
Cash Flow (A) -$500 180 170 150 134
Cash Flows (B) -$500 155 155 155 155
a) Using Excel find the value of IRR AND NPV
b) If Annie's Land Co. has a cost of capital of 10%, which project should the company accept? Why
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