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Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Project CF CF CF CF CF Cost of capital
Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Project CF CF CF CF CF Cost of capital A -100 40 50 60 10 15% B -73 30 30 30 30 15% Which of the following statements is correct? Accept project A since its IRR > 15% Reject project B since its NPV > 0 Accept project A since its NPV < 0 Accept project B since its IRR < 15%
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