Question
Question 5 Consider the cash flows for Project C and Project D: Year Project C Project D 0 -90000 -110000 1 22000 25000 2 27000
Question 5
Consider the cash flows for Project C and Project D:
Year | Project C | Project D |
0 | -90000 | -110000 |
1 | 22000 | 25000 |
2 | 27000 | 30000 |
3 | 32000 | 35000 |
4 | 37000 | 40000 |
5 | 42000 | 45000 |
6 | 47000 | 50000 |
Requirements:
- Calculate the NPV for both projects with a discount rate of 9%.
- Determine the IRR for each project.
- Calculate the payback period for both projects.
- Discuss the selection of projects if they are independent.
- Discuss the selection of projects if they are mutually exclusive.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
25th edition
978-1285069609, 1285069609, 978-1133607601
