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Investment Rules: Problem 1 Cash flows for projects A and B are as follows: Time A B 0 -$2,300 $2,300 $ 600 $ 1,100 $
Investment Rules: Problem 1 Cash flows for projects A and B are as follows: Time A B 0 -$2,300 $2,300 $ 600 $ 1,100 $ 750 $ 950 3 $ 800 $ 500 4 $1,000 $ 450 What is the payback period for each project? Find the IRR for each project. Which project should be accepted If A and B are mutually exclusive and the required rate of return is 5%? 14%? At what discount rate will I be indifferent between A or B
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