In-N-Out Burger Cash Flow Estimates:

Denver: -140, 40, 60, 80

Colorado Springs: -100, 20, 40, 60

Assume WACC is 10%, what is the NPV and IRR for Denver?s

15.15 / 10.00%

11.98 / 12.18%

6.06 / 12.18%

-3.68 / 8.21%

9.74 / 23.38%

In-N-Out Burger Cash Flow Estimates:

Denver: -140, 40, 60, 80

Colorado Springs: -100, 20, 40, 60

Assume WACC is 10%, what is the NPV and IRR for Colorado Springs?

15.15 / 10.00%

11.98 / 12.18%

6.06 / 12.18%

-3.68 / 8.21%

9.74 / 23.38%

You are the CFO of In-N-Out Burger. Denver NPV / IRR is 6.06 / 12.18%. Colorado Springs NPV / IRR is -3.68 / 8.21%. Which project / s do you accept if the projects are mutually exclusive?

Both Denver and Colorado Springs because IRRs are positive

Colorado Springs only. Higher NPV and IRR

Denver only. Higher NPV and IRR

Neither Denver nor Colorado Springs. Both have NPVs that are negative and the IRR