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For your analysis, assume these projects are mutually exclusive with a required rate of return of 12%. Project 1 Project 2 Initial investment $185,000 $1,100,000
For your analysis, assume these projects are mutually exclusive with a required rate of return of 12%.
Project 1 Project 2
Initial investment $185,000 $1,100,000
Cash inflow Year $230,000 $1,450,000
Compute the following for each project:
NPV (net present value)
PI (profitability index)
IRR (internal rate of return)
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