Question
GHI Pharmaceuticals is deciding between two projects. The projected cash flows are given below. The companys discount rate is 11%. Year Project M Project N
GHI Pharmaceuticals is deciding between two projects. The projected cash flows are given below. The company’s discount rate is 11%.
Year | Project M | Project N |
0 | -$250,000 | -$300,000 |
1 | $70,000 | $80,000 |
2 | $80,000 | $90,000 |
3 | $90,000 | $100,000 |
4 | $100,000 | $110,000 |
a. Calculate the IRR for each project. b. Determine the NPV and decide which project is more viable.
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Financial Accounting
Authors: David Spiceland, Wayne Thomas, Don Herrmann
4th edition
1259307956, 978-1259307959
