Question
Please solve only using a calculator! (We do not use excel for exams, therefore I would like to learn how to solve on my own)
| Please solve only using a calculator! (We do not use excel for exams, therefore I would like to learn how to solve on my own) Thank you!! Mahjong, Inc., has identified the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | $36,500 | $36,500 |
| 1 | 18,820 | 6,400 |
| 2 | 14,320 | 12,900 |
| 3 | 11,820 | 19,400 |
| 4 | 8,820 | 23,400 |
| Required: |
| (a) | What is the IRR for Project A? |
| (b) | What is the IRR for Project B? |
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| (c) | If the required return is 13 percent, what is the NPV for Project A? |
| (d) | If the required return is 13 percent, what is the NPV for Project B? |
| (e) | At what discount rate would the company be indifferent between these two projects? |
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Entrepreneurial Finance Finance For Small Business
Authors: Philip J. Adelman
1st Edition
0138129835, 9780138129835
