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Consider the following three investment projects, each with different cash flows in time. Your cost of capital is 7 percent. I I Project A B
Consider the following three investment projects, each with different cash flows in time. Your cost of capital is 7 percent. I I Project A B 0 -10,000 -10,000 -20,000 1 5,000 1,500 3,000 2 4,000 2,500 5.000 3 3,000 3,500 7.000 4 2,000 4,500 9,000 5 1,000 5,500 11,000 C a) Calculate the net present values and internal rates of return for e the projects. b) If they are independent, should any of the projects be accep ernal rates of return for each of projects be accepted? Why
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