Question
Evaluate investment projects using NPV and IRR methods. Investment Project Initial Investment ($) Annual Cash Inflows ($) Project Life (years) Project A $3,000,000 $600,000 5
Evaluate investment projects using NPV and IRR methods.
Investment Project | Initial Investment ($) | Annual Cash Inflows ($) | Project Life (years) |
Project A | $3,000,000 | $600,000 | 5 |
Project B | $2,500,000 | $500,000 | 4 |
Requirements:
Calculate the NPV and IRR for both Project A and Project B using a discount rate of 12%.
Recommend which project to undertake based on NPV and IRR analysis.
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Principles Of Managerial Finance
Authors: Chad Zutter, Scott Smart
16th Global Edition
1292400641, 978-1292400648
