Question
ClearVision Inc. is considering two projects. The details are: Year Project E (thousands $) Project F (thousands $) 0 -100 -120 1 40 60 2
ClearVision Inc. is considering two projects. The details are:
Year | Project E (thousands $) | Project F (thousands $) |
0 | -100 | -120 |
1 | 40 | 60 |
2 | 50 | 70 |
3 | 60 | 80 |
The discount rate is 12%.
Requirements: a) Calculate the payback period for each project. b) Compute the IRR for both projects. c) Determine the NPV for both projects. d) Advise which project should be undertaken and justify your recommendation.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
