Question
Consider the following two mutually exclusive projects: Cash Flows ($ millions) ProjectC 0 C 1 C 2 C 3 A-200+110+120 0 B-20000+250 A . Calculate
Consider the following two mutually exclusive projects:
Cash Flows ($ millions)
ProjectC0C1C2 C3
A-200+110+120 0
B-20000+250
A. Calculate IRR for A, IRR for B, and the cross-over rate of the two projects.
B. What is the range of the discount rate (to calculate NPV) that A should be chosen; and what is the range of the discount rate that B should be chosen?
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
