Question
Kerron Company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent year Project M Project N
Kerron Company is presented with the following two mutually exclusive projects. The required return for both projects is 15
percent
year Project M Project N
0 -125,000 -310,000
1 57,000 135,000
2 64,000 161,000
3 59,000 129,000
4 34,000 92,000
What is the IRR for each project?
What is the NPV for each project?
Which, if either, of the projects should the company accept?
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
