Question
Apple Inc. is considering investing in two new projects: Project A and Project B. The initial investment, annual cash flows, and project lifespans are as
Apple Inc. is considering investing in two new projects: Project A and Project B. The initial investment, annual cash flows, and project lifespans are as follows:
Project | Initial Investment | Annual Cash Flows (Years 1-5) | Project Lifespan |
A | $1,000,000 | $300,000 | 5 years |
B | $1,500,000 | $400,000 | 7 years |
Calculate the net present value (NPV) and internal rate of return (IRR) for each project assuming a discount rate of 10%.
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
