Question
MNO Manufacturing is evaluating two projects with the following cash flows. The companys discount rate is 9%. Year Project I1 Project J1 0 -$100,000 -$120,000
MNO Manufacturing is evaluating two projects with the following cash flows. The company’s discount rate is 9%.
Year | Project I1 | Project J1 |
0 | -$100,000 | -$120,000 |
1 | $35,000 | $40,000 |
2 | $45,000 | $50,000 |
3 | $55,000 | $60,000 |
4 | $65,000 | $70,000 |
a. Compute the internal rate of return (IRR) for each project. b. Determine the NPV and indicate which project should be selected.
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Calculus
Authors: Ron Larson, Bruce H. Edwards
10th Edition
1285057090, 978-1285057095
