Question
The cash flows for three independent projects are found below: Year 0 (Initial investment) $(50,000) $(100,000) $(450,000) Year 1 $10,000 $25,000 $200,000 Year 2 15
The cash flows for three independent projects are found below:
Year 0 (Initial investment) | $(50,000) | $(100,000) | $(450,000) | |||
Year 1 | $10,000 | $25,000 | $200,000 | |||
Year 2 | 15 ,000 | 25 ,000 | 200 ,000 | |||
Year 3 | 20 ,000 | 25 ,000 | 200 ,000 | |||
Year 4 | 25 ,000 | 25 ,000 |
| |||
Year 5 | 30,000 | 25 ,000 |
a.Calculate the IRR for each of the projects.
b.If the discount rate for all three projects is 10% which project or projects would you want to undertake?
c.What is the net present value of each of the projects where the appropriate discount rate is 10%?
a.The IRR of Project A is ?(Round to two decimal places.)
The IRR of Project B is ? (Round to two decimal places.)
The IRR of Project C is %. (Round to two decimal places.)
b.If the discount rate for all three projects is 10% which project or projects would you want to undertake?
c.The net present value of Project A where the appropriate discount rate is 10% .....? (Round to the nearest dollar.)
The net present value of Project B where the appropriate discount rate is 10% is.....? (Round to the nearest dollar.)
The net present value of Project C where the appropriate discount rate is 10%......?(Round to the nearest dollar.)
please show how to solve this
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