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The cash flows of project A are as follows: - 1 5 0 initial investment, 6 0 , 3 0 , 3 0 , 3
The cash flows of project A are as follows: initial investment, The cash flows of project B are as follows: initial investment,
a What are the Internal Rates of Return for each project?
b Assume the required rates of return for both projects are identical, but the only thing you know is that the discount rate is some value between and While considering your answer from part A which project if any should be undertaken?
c Assume that the required rate of return for both projects is Which project, if any, should be undertaken, and why?
d Assume that the required return for both projects is but a project can only be undertaken if it pays back the initial investment in or less years. Which project, if any, should be undertaken, and why?
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