Question
Consider the following two mutually exclusive projects (X and Y) available to you: Year Cash Flow (X) Cash Flow (Y) 0 -$ 170,000 - $
- Consider the following two mutually exclusive projects (X and Y) available to you:
| Year | Cash Flow (X) | Cash Flow (Y) |
| 0 | -$ 170,000 | - $ 136,000 |
| 1 | 112,000 | 26,000 |
| 2 | 66,000 | 56,000 |
| 3 | 26,000 | 96,000 |
|
|
|
|
| IRR | 12.48% | 12.07% |
Whichever project you choose, if any, you require a 10 percent return on your investment.
- Calculate the payback period for each project. (6 marks)
- Calculate the net present value (NPV) of each project (6 marks)
- Based on your calculated answers above about Payback Period, NPV as well as the given IRR, which project will you finally choose? Why? (3 marks)
Please not in excel and list more details >.< Thanks a lot~~
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Supernatural Provision Living In Financial Freedom
Authors: Joan Hunter, Sid Roth
1st Edition
1641238232, 978-1641238236
