Question
Calculate the NPV of each project. Calculate the IRR of each project. Botany Designs is looking to revamp its manufacturing facility and has two different
Calculate the NPV of each project.
Calculate the IRR of each project.
Botany Designs is looking to revamp its manufacturing facility and has two different options they can choose from. The initial investment for each option is $100,000. They have set a minimum payback requirement of 4 years. The cost of capital is going to be 11% for each project.
Cash Inflows for years 1-5 are:
|
Year | Project Speedy (S) | Project Quality (Q) |
| 1 | 32000 | 22500 |
| 2 | 32000 | 22500 |
| 3 | 32000 | 22500 |
| 4 | 32000 | 22500 |
| 5 | 32000 | 22500 |
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Fundamentals Of Futures And Options Markets
Authors: Jonn C. Hull
8th International Edition
0133382850, 9780133382853
