Question
Consider the following two mutually exclusive investments: Year Investment Clubs $ Investment Spades $ 0 -750 -750 1 200 600 2 400 500 3 700
Consider the following two mutually exclusive investments:
| Year | Investment Clubs $ | Investment Spades $ |
| 0 | -750 | -750 |
| 1 | 200 | 600 |
| 2 | 400 | 500 |
| 3 | 700 | 150 |
Calculate the internal rate of return for each and the crossover rate. Under what circumstances will the internal rate of return and the net present value rank the projects differently?
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International Trade Finance
Authors: Indian Institute Of Banking & Finance
1st Edition
9386394723, 978-9386394729
