Question
The director of the capital budgeting for Giant Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows:
The director of the capital budgeting for Giant Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows:
| Year | Project L | Project S |
| 0 | -$100 | -$100 |
| 1 | 10 | 70 |
| 2 | 60 | 50 |
| 3 | 80 | 20 |
Both projects have a cost of capital of 12 percent. What is Project L's IRR?
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The Principles Of Project Finance
Authors: Rod Morrison
1st Edition
1409439828, 9781409439820
