Question
Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 14 percent.
| Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 14 percent. |
| Year | Deepwater Fishing | New Submarine Ride | ||||
| 0 | 950,000 | 1,850,000 | ||||
| 1 | 370,000 | 900,000 | ||||
| 2 | 510,000 | 800,000 | ||||
| 3 | 420,000 | 750,000 |
| a-1. | Compute the IRR for both projects.(Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) |
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
