Question
Consider the following cash flows of two mutually exclusive projects for Tadcaster Rubber Company. Assume the discount rate for Tadcaster Rubber Company is 10 per
| Consider the following cash flows of two mutually exclusive projects for Tadcaster Rubber Company. Assume the discount rate for Tadcaster Rubber Company is 10 per cent. |
| Year | Dry Prepreg ($) | Solvent Prepreg ($) |
| 0 | (690,000) | (490,000) |
| 1 | 452,000 | 276,000 |
| 2 | 286,000 | 416,000 |
| 3 | 864,000 | 137,000 |
| Requirement 1: | |
| (a) (b) | Calculate the NPV. Which project should be taken? |
| (2a) | Calculate the IRR |
| (b) | Which project should be taken?
|
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Creative Accounting, Fraud And International Accounting Scandals
Authors: Michael J. Jones
1st Edition
0470057653, 9780470057650
