Question
Garage, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 29,400 $ 29,400 1 14,800 4,500
| Garage, Inc., has identified the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 29,400 | $ | 29,400 | |||
| 1 | 14,800 | 4,500 | |||||
| 2 | 12,700 | 10,000 | |||||
| 3 | 9,400 | 15,600 | |||||
| 4 | 5,300 | 17,200 | |||||
What is the IRR for each of these projects?If the required return is 12 percent, what is the NPV for each of these projects?
| At what discount rate would the company be indifferent between these two projects |
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Pricing And Liquidity Of Complex And Structured Derivatives
Authors: Mathias Schmidt
1st Edition
3319459694, 978-3319459691
