Question
Reece company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent. Yr Project M Project N
Reece company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent.
Yr Project M Project N
0 -$150000 -$372000
1 68600 159300
2 76800 193200
3 71300 154800
4 40500 110400
a. What is the IRR for each project?
b. What is the NPV for each project?
c. What, if either, of the projects should the company accept?
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
