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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 B? (sample answer: 10.50%)
Review the following cash flows and the cost of capital for projects A and B. What is the IRR for Project B? (sample answer: 10.50%)
| 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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