Question
Project Selection Dragon Products Company is considering two projects. The projects cash flows are as follows: EXPECTED NET CASH FLOWS YEAR PROJECT A PROJECT B
Project Selection
Dragon Products Company is considering two projects. The projects cash flows are as follows:
| EXPECTED NET CASH FLOWS | ||
| YEAR | PROJECT A | PROJECT B |
| 0 | ($9300) | (17,600) |
| 1 | 2700 | 3870 |
| 2 | 1930 | 2450 |
| 3 | 1500 | 4700 |
| 4 | 2800 | 4575 |
| 5 | 3200 | 2450 |
| Discount Rate for both pojects = 7.5% | ||
REQUIRED
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What are the IRR of the projects ? Which of the projects is the best using IRR as a criteria? Why?
-
Why is sunk cost not considered when deciding about selecting a project? Which cost is considered and why?
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International Auditing Standards In The United States Comparing And Understanding Standards For ISA And PCAOB
Authors: Asokan Anandarajan
1st Edition
1606496123, 978-1606496121
