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Marissa Manufacturing is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent. Year Project M Project N
Marissa Manufacturing is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent.
Year | Project M | Project N |
---|---|---|
0 | $ 120,000 | $ 339,000 |
1 | 55,500 | 154,300 |
2 | 69,400 | 164,400 |
3 | 64,100 | 150,800 |
4 | 36,500 | 105,400 |
What is the IRR for each project?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
What is the NPV for each project?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Which, if either, of the projects should the company accept?
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