Question
Joon.com is considering two projects given below: If the two projects have the same payback period, what would be Project 2s internal rate of return
Joon.com is considering two projects given below:
If the two projects have the same payback period, what would be Project 2s internal rate of return (IRR)? (Hint: You need to find Project 1s Payback period and find project 2s cash flow at year 0 using Project1s payback period). Must show work
| Year | Project 1 | Project 2 |
| Cash Flow | Cash Flow | |
| 0 | -$100 | ? |
| 1 | 30 | 40 |
| 2 | 50 | 80 |
| 3 | 40 | 60 |
| 4 | 50 | 60 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
7th Edition
007331465X, 978-0073314655
