Question
Here are the cash flows for two mutually exclusive projects: Project C 0 C 1 C 2 C 3 A $30,800 +$12,200 +$12,200 +$12,200 B
Here are the cash flows for two mutually exclusive projects:
Project C0 C1 C2 C3
A $30,800 +$12,200 +$12,200 +$12,200
B 30,800 0 0 +38,700
a. Given the following interest rates (0%, 2%, 4%, 6%, 8%, 10%, 12%, 14%, 16%, 18%, 20%), above what interest rates would you prefer project A to B?
b.What is the IRR of each project?(Round your answers to 2 decimal places.) A and B
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
