Question
The cash flows for three independent projects are found below: LOADING... . a.Calculate the IRR for each of the projects. b.If the discount rate for
The cash flows for three independent projects are found below:
LOADING...
.
a.Calculate the IRR for each of the projects.
b.If the discount rate for all three projects is 15 percent, 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 15 percent?
| Project A | Project B | Project C | ||||
| Year 0 (Initial investment) | $(60,000) | $(95,000) | $(440,000) | |||
| Year 1 | $9,000 | $27,000 | $220,000 | |||
| Year 2 | 16,000 | 27,000 | 220,000 | |||
| Year 3 | 19,000 | 27,000 | 220,000 | |||
| Year 4 | 28,000 | 27,000 | ||||
| Year 5 | 29,000 | 27,000 | ||||
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
