Question
question 5 Zink, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year
question 5 Zink, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $65,000 in year two, $56,000 in year three, and $40,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. What is the modified internal rate of return for Project B?
question 6 Pirelli has fixed costs of $220,000. Tires sell for $95 each and have a unit variable cost of $43. What is Pirelli's break-even point in units?
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