Question
Pfizer Inc. is considering investing in three new projects: Project A, Project B, and Project C. The initial investment, annual cash flows, and project lifespans
Pfizer Inc. is considering investing in three new projects: Project A, Project B, and Project C. The initial investment, annual cash flows, and project lifespans are as follows:
Project | Initial Investment | Annual Cash Flows (Years 1-5) | Project Lifespan |
A | $5,000,000 | $1,000,000 | 5 years |
B | $4,000,000 | $900,000 | 6 years |
C | $3,000,000 | $800,000 | 4 years |
Calculate the net present value (NPV) and internal rate of return (IRR) for each project assuming a discount rate of 10%.
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
