Question
*Calculate the IRR of each project. Rank the project by IRR. *Make a recommendation. Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each
*Calculate the IRR of each project. Rank the project by IRR.
*Make a recommendation.
Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $110 comma 000. The company's board of directors has set a 4-year payback requirement and has set its cost of capital at 8%.
| Cash inflows (CFt) | |||
| Year | Project A | Project B | |
| 1 | $35 comma 000 | $75 comma 000 | |
| 2 | $35 comma 000 | $50 comma 000 | |
| 3 | $35 comma 000 | $20 comma 000 | |
| 4 | $35 comma 000 | $20 comma 000 | |
| 5 | $35 comma 000 | $20 comma 000 | |
| 6 | $35 comma 000 | $20 comma 000 | |
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Auditing Business Functions A Practical Guide To Drafting An Audit Auditing And Assurance Services
Authors: Ward Berrios
1st Edition
B097D4S7SD, 979-8524939265
