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Consider two projects with the following cash flows: Year 4012345 Project 1 Cash Flow -$2,000 500 Project 2 Cash Flow -$1,900 1,100 700 900
Consider two projects with the following cash flows: Year 4012345 Project 1 Cash Flow -$2,000 500 Project 2 Cash Flow -$1,900 1,100 700 900 800 800 1,000 600 1,100 400 Answer: a) What is the NPV @ 10% of project 2? b) What is the IRR of project 2? c) What is the MIRR @ 9% of project 1 with a re-investment rate of 5%? d) What is the Payback period of project 1? e) What is the crossover point for the two projects?
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Answer To calculate the NPV IRR MIRR Payback period and crossover point for the given projects we ne...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
