Question
Consider projects A and B: Cash Flows (dollars) Project C 0 C 1 C 2 NPV at 10% A 36,000 25,800 25,800 +$8,777 B 56,000
Consider projects A and B:
| Cash Flows (dollars) | ||||
| Project | C0 | C1 | C2 | NPV at 10% |
| A | 36,000 | 25,800 | 25,800 | +$8,777 |
| B | 56,000 | 39,000 | 39,000 | +11,686 |
a. Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
| ||||||||||
b. Which project does the IRR rule suggest is best?
Project A
Project B
c. Which project is really best?
Project A
Project B
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Professionals Handbook Of Financial Risk Management
Authors: Lev Borodovsky, Marc Lore
1st Edition
0750641118, 978-0750641111
