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Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRRs of each investment
Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRRs of each investment are given below for each option. Given that interet is 5%, find A and B. Which project you select? Project 1(s) Project 2 ($) - 18000 -23000 8412 Year O 1 2 3 IRR B 6000 0,07 3570 3"B A 0,06 Select one: O a. A=4300. B=6000, Select Project 1 Ob. A=22000, B=8000, Select Project 2 O c. A=26000. B=4000. Select Project 2 od. A=11600. B=2000, Select Project 2 e. A=10000. B=10000. Select Project 1 of. A=8000, B=9000, Select Project 1
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