Chapter 10 - HW

Table 1

1. Given the information in Table 1 and 15 percent cost of capital,

(a) Compute the net present value & IRR

(b) Should the project be accepted?

2. Use the IRR approach to select the best group of projects, if the required rate of return is 23.5%. and what would their NPV be? (See Table below)

IRR Approach