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Given that the cost of capital is 14%: Given the following two mutually exclusive projects: Project CF0 CF1 CF2 CF3 CF4 A -8,000 2,500 3,150
Given that the cost of capital is 14%:
Given the following two mutually exclusive projects:
Project | CF0 | CF1 | CF2 | CF3 | CF4 |
A | -8,000 | 2,500 | 3,150 | 3,000 | 3,000 |
B | -10,000 | 3,500 | 3,000 | 4,000 | 4,000 |
Calculate the IRR and the NPV of each project and recommend which project should be accepted?
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