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NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 1 6
NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of has estimated its cash flows as shown in the following table: a Calculate the NPV of each project, and assess its acceptability. b Calculate the IRR for each project, and assess its acceptability. a The NPV of project is $ Round to the nearest cent. According to the NPV method, is project A acceptable? Select the best answer below. Yes No The NPV of project is $ Round to the nearest cent. Is project B acceptable on the basis of NPVSelect the best answer below. Yes No b The IRR of project is Round to two decimal places. Is project A acceptable on the basis of IRR? Select the best answer below. No Yes The IRR of project is Round to two decimal places. Is project B acceptable on the basis of IRR? Select the best answer below. Yes No : Data Table Click on the icon here in order to copy the contents of the data table below into a spreadsheet. tabletableInitial investment
NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of has estimated its cash flows as shown in the following table:
a Calculate the NPV of each project, and assess its acceptability.
b Calculate the IRR for each project, and assess its acceptability.
a The NPV of project is $
Round to the nearest cent.
According to the NPV method, is project A acceptable? Select the best answer below.
Yes
No
The NPV of project is $
Round to the nearest cent.
Is project B acceptable on the basis of NPVSelect the best answer below.
Yes
No
b The IRR of project is
Round to two decimal places.
Is project A acceptable on the basis of IRR? Select the best answer below.
No
Yes
The IRR of project is
Round to two decimal places.
Is project B acceptable on the basis of IRR? Select the best answer below.
Yes
No
: Data Table
Click on the icon here in order to copy the contents of the data table below into a spreadsheet.
tabletableInitial investment
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