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Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following table: Terra
Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following table:
Terra | Firma | |||
Initial investment | $25,000 | $22,000 | ||
Year | Cash inflows | |||
1 | $11,000 | $6,000 | ||
2 | $8,000 | $8,000 | ||
3 | $7,000 | $6,000 | ||
4 | $10,000 | $9,000 |
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Using these data, graph, on the same set of axes, the NPV profiles for each project using discount rates of 0%, 8%, and the IRR.
The IRR of project Terra __ %
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