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Cash flows from two investment opportunities are given below and the cost of capital is 10%. Year CF A CF B 0 -$1,000 -$1,000 1
Cash flows from two investment opportunities are given below and the cost of capital is 10%.
Year CFA CFB
0 -$1,000 -$1,000
1 + $100 + $800
2 + $200 + $300
3 + $400 + $300
4 + $700 + $200
5 + $800 + $200
- What is the NPV and IRR for each investment?
- What is the appropriate investment choice if (i) the investments are mutually exclusive, or (ii) the investments are independent?
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Digital Finance Big Data Start-ups And The Future Of Financial Services
Authors: Perry Beaumont
1st Edition
0367146797, 978-0367146795
