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Consider the following cash flows for two mutually exclusive investments : t=0 t=1 t=2 t=3 A ($1,212) $898 $543 $111 B ($911) $101 $234 $1,033
Consider the following cash flows for two mutually exclusive investments :
| t=0 | t=1 | t=2 | t=3 |
|
A | ($1,212) | $898 | $543 | $111 | |
B | ($911) | $101 | $234 | $1,033 |
Given the cost of capital is 8% what is the internal rate of return of the better project?
14.33% | ||
18.45% | ||
19.62% | ||
16.57% | ||
15.82% |
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