Question
Suppose a firm has two mutually exclusive projects that are expected to generate following Cash flows End of Year Project A Project B Cash flows
Suppose a firm has two mutually exclusive projects that are expected to generate following Cash flows
End of Year Project A Project B
Cash flows (Sh) Cash flows (Sh)
0 -1000,000 -100,000,000
1 0 0
2 400,000 156,250,000
If the required rate of return is 10% the NPV, IRR and PI of the projects are as below
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
2nd Edition
0131471988, 978-0131471986
