Question
Evaluate the following cash flow streams for Projects Alpha & Beta by calculating the IIR, PP, ROI, & NPV. Assume a MARR of 15% 0
Evaluate the following cash flow streams for Projects Alpha & Beta by calculating the IIR, PP, ROI, & NPV. Assume a MARR of 15%
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| 0 | 1 | 2 | 3 | 4 | 5 |
| Project Alpha | -$165,000 | $40,000 | $50,000 | $60,000 | $70,000 | $80,000 |
| Project Beta | -$265,000 | $120,000 | $100,000 | $80,000 | $90,000 | $70,000 |
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(2) A. IRRA = IRRB =
B. PPA = PPB =
C. ROIA = ROIB =
D. NPVA = NPVB =
E. Based upon your analysis above, which of the two investments would you pursue, Project Alpha or Project Beta? [Should be solely based upon the most number of favorable outcomes above]
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
