Question
Capital Budgerting Criteria A company has a 12% WACC and is considering two mutually exclusive investment (that cannot be repeated) with the following cas flows:
Capital Budgerting Criteria
A company has a 12% WACC and is considering two mutually exclusive investment (that cannot be repeated) with the following cas flows:
0 1 2 3 4 5 6 7
Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180
Project B -$405 -$134 $134 $134 $134 $134 $134 $0
A. What is each project's NPV ?
B. What is each project's IRR ?
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The Concepts And Practice Of Mathematical Finance
Authors: Mark S. Joshi
2nd Edition
0521514088, 9780521514088
