Question
Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 10 percent.
Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 10 percent.
| Year | Dry Prepreg | Solvent Prepreg | ||||
| 0 | $ | 1,780,000 | $ | 790,000 | ||
| 1 | 1,108,000 | 415,000 | ||||
| 2 | 916,000 | 680,000 | ||||
| 3 | 758,000 | 406,000 | ||||
What is the payback period for each project?
What is the NPV for each?
What is IRR for each?
What is the incremental IRR for the cash flows?
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International Finance For Dummies
Authors: Ayse Evrensel
1st Edition
111852389X, 978-1118523896
