Question
Company Initial Investment ($) Year 1 Cash Flow ($) Year 2 Cash Flow ($) Year 3 Cash Flow ($) Year 4 Cash Flow ($) Apple
Company | Initial Investment ($) | Year 1 Cash Flow ($) | Year 2 Cash Flow ($) | Year 3 Cash Flow ($) | Year 4 Cash Flow ($) |
Apple Inc. | $1,500,000 | $300,000 | $400,000 | $500,000 | $600,000 |
Microsoft | $2,000,000 | $500,000 | $550,000 | $600,000 | $650,000 |
Calculate the internal rate of return (IRR) for both projects and recommend which project the company should undertake, assuming a discount rate of 12%.
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Fundamentals of Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
6th edition
978-0077862237
