Question
SS Co. is selecting investment projects. They have one potential project what has the following cash flow information. The company's cost of capital is 12%.
SS Co. is selecting investment projects. They have one potential project what has the following cash flow information. The company's cost of capital is 12%. 0 1 2 3 4 5 Project A -$30,000 $7,000 $8,000 $9,000 $10,000 $11,000 Calculate Project's NPV, IRR, and indicate if this project is acceptable. NPV= IRR= Is this project acceptable based on NPV method? Is this project acceptable based on IRR method? Ricci has two investment opportunities and she has to pick one. She wants to find the one that has the best risk and return relationship. Do coefficient of variation calculation and use the result to find the best investment. (You must show your work to earn credit.) Expected return on each Standard deviation of each investment's returns Investment A 12% 8% Investment B 18% 15%
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