Question
Discount rate 10% A B Year Cash Flows Cash Flows 0 -50,000 -50,000 1 20,000 0 2 20,000 0 3 20,000 20,000 4 20,000 50,000
Discount rate 10% | ||
A | B | |
Year | Cash Flows | Cash Flows |
0 | -50,000 | -50,000 |
1 | 20,000 | 0 |
2 | 20,000 | 0 |
3 | 20,000 | 20,000 |
4 | 20,000 | 50,000 |
5 | 20,000 | 20,000 |
What is the IRR of each project?
Project A has an IRR of 28.68% and project B has an IRR of 16.73% | ||
Project A has an IRR of 28.68% and project B has an IRR of 15.97% | ||
Project A has an IRR of 21.75% and project B has an IRR of 16.73% | ||
Unable to calculate with given data. |
Given the information below for project A:
Year | Project A | Project B |
0 | (1,000) | (1,000) |
1 | 600 | 600 |
2 | 300 | 300 |
3 | 200 | 200 |
4 | 100 | 100 |
5 | 500 | 500 |
What is the payback period for project A? Given a 10% discount, what is the DISCOUNTED payback period for project B?
2.5 years / 3.83 years | ||
3.25 years / 3 years | ||
2.5 years / 2.5 years | ||
3 years / 3.83 years |
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