Question
Problem 11-17 Capital budgeting criteria A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following
Problem 11-17 Capital budgeting criteria
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Project A | -$300 | -$387 | -$193 | -$100 | $600 | $600 | $850 | -$180 |
| Project B | -$405 | $133 | $133 | $133 | $133 | $133 | $133 | $0 |
Construct NPV profiles for Plans A and B. Round your answers to the nearest cent.
| Discount Rate | Plan A | Plan B |
| 18.1% | $ | $ |
| 23.65% | $ | $ |
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Contemporary Topics In Finance
Authors: Iris Claus, Leo Krippner
1st Edition
1119565162, 978-1119565161
