Question
Chestnut Tree Farms has identified the following two mutually exclusive projects. The company uses a discount rate of 6%. Year Cash Flow (A) Cash Flow
Chestnut Tree Farms has identified the following two mutually exclusive projects. The company uses a discount rate of 6%.
| Year | Cash Flow (A) | Cash Flow (B) |
| ||||
| 0 | $ | 40,000 |
| $ | 40,000 |
| |
| 1 |
| 11,300 |
|
| 17,400 |
| |
| 2 |
| 14,800 |
|
| 14,100 |
| |
| 3 |
| 13,700 |
|
| 12,900 |
| |
| 4 |
| 7,900 |
|
| 2,200 |
| |
- What is the IRR of each project? Based on the IRR criterion, which project(s) would you choose?
- What is the NPV of each project? Based on the NPV method which project(s) would you choose?
- What is your final choice of project?
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Cryptocurrency Trading A Beginner S Guide To Cryptocurrency Trading Strategies
Authors: Hollis Slough
1st Edition
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