Question
Company STU has two investment options with the following details: Year Option A Option B 0 -$150,000 -$180,000 1 $50,000 $60,000 2 $50,000 $60,000 3
Company STU has two investment options with the following details:
Year | Option A | Option B |
0 | -$150,000 | -$180,000 |
1 | $50,000 | $60,000 |
2 | $50,000 | $60,000 |
3 | $50,000 | $60,000 |
4 | $50,000 | $60,000 |
5 | $50,000 | $120,000 |
- Calculate the NPV at a discount rate of 9%.
- Calculate the IRR.
- Determine the PI for each option.
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
8th Edition
1337558079, 978-1337558075
