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Consider two projects with the following cash flow sequences with a 10% MARR: n Proyecto A Proyecto B 0 - $ 100,000.00) - $100,000.00 1
Consider two projects with the following cash flow sequences with a 10% MARR:
n | Proyecto A | Proyecto B |
0 | - $ 100,000.00) | - $100,000.00 |
1 | $ 10,500.00 | $ 70,000.00 |
2 | $ 60,000.00 | $ 50,000.00 |
3 | $ 80,000.00 | $ 20,500.00 |
-Calculate the NPV of each alternative. Which one would you select? -Calculate the IRR of each project. Which one would you select? -Apply the interpolation formula for the winning IRR
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