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Review the following cash flows and the cost of capital for projects A and B. What is the IRR for Project A? (sample answer: 11.50%)

Review the following cash flows and the cost of capital for projects A and B. What is the IRR for Project A? (sample answer: 11.50%)

A

B

C

D

E

1

Cost of Capital: r=

10%

2

T=

0

1

2

3

3

Project

C0

C1

C2

C3

4

A

-200

80

130

80

5

B

-200

60

100

100

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