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The following are two projects a firm is considering: Assuming that the relevant cost or copital for both propects is 10% you should be able

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The following are two projects a firm is considering: Assuming that the relevant cost or copital for both propects is 10% you should be able to determine the net present value (NPV) and the internal rate of return (IRR) for both project. Assume now that the firm has capital rationing, but knows that is true reinvestrent rate is 20%, while its cost of capital is 10 percent. Given this information, determine the modified net present value MNPV for ProjectA

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