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Carla Vista Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of
Carla Vista Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 15 percent. Year 1 2 3 4 5 A -$295,132 119,300 119,300 119,300 119,300 119,300 The NPV of project A is $ There is -$406,208 168,190 142,830 The IRR of Project A is B a. Calculate the projects' NPV. (Enter negative amounts using negative sign eg. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, eg. 1.525.) Carla Vista should choose 149,500 138,800 b. Calculate the projects' IRR. (Round answer to 2 decimal places, eg. 15.25%) 109,900 c. Which project should be chosen based on NPV? Based on IRR? Is there a conflict? Tauthonk and Media and project is s % and Project Bis V between the NPV and IRR decisions. will be accepted. d. If you are the decision maker for the firm, which project or projects will be accepted? Q ALE Q Q Q ALL Q Q Q ALE Q ALE Q ALT Q Q 52 52 02 02 A Q
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