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Consider the following cash flows for three mutually exclusive projects. What is the IRR of the project you should accept? Assume an interest rate of
Consider the following cash flows for three mutually exclusive projects. What is the IRR of the project you should accept? Assume an interest rate of 12%
| Year | A | B | C |
| 0 | $950,000 | $1,790,000 | -$1,000,000 |
| 1 | 370,000 | 800,000 | 660,000 |
| 2 | 510,000 | 800,000 | 550,000 |
| 3 | 420,000 | 750,000 | 340,000 |
What is the IRR of the project the company should adopt?
Using excel to do it.
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