Question
(IRR and NPV calculation) The cash flows for three independent projects are found below: Project A Project B Project C Year 0 (Initial investment $(45,000)
(IRR and NPV calculation) The cash flows for three independent projects are found below:
| Project A | Project B | Project C | |
|---|---|---|---|
| Year 0 (Initial investment | $(45,000) | $(105,000) | $(400,000) |
| Year 1 | 12,000 | 26,000 | 240,000 |
| Year 2 | 18,000 | 26,000 | 240,000 |
| Year 3 | 21,000 | 26,000 | 240,000 |
| Year 4 | 28,000 | 26,000 | ----- |
| Year 5 | 29,000 | 26,000 | ----- |
a. Calculate the IRR for each of the projects. b. If the discount rate for all three projects is 9%, which project or projects would you want to undertake? c. What is the net present value of each of the projects where the appropriate discount rate is 9%
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Standards Of Value
Authors: Jay E. Fishman, Shannon P. Pratt, William J. Morrison
2nd Edition
1118138538, 978-1118138533
