Question
Procter & Gamble is considering investing in four new projects: Project A, Project B, Project C, and Project D. The initial investment, annual cash flows,
- Procter & Gamble is considering investing in four new projects: Project A, Project B, Project C, and Project D. The initial investment, annual cash flows, and project lifespans are as follows:
Project | Initial Investment | Annual Cash Flows (Years 1-5) | Project Lifespan |
A | $3,000,000 | $700,000 | 5 years |
B | $2,500,000 | $600,000 | 6 years |
C | $4,000,000 | $900,000 | 7 years |
D | $3,500,000 | $800,000 | 5 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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Construction accounting and financial management
Authors: Steven j. Peterson
2nd Edition
135017114, 978-0135017111
