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To explain BioCom's capital budgeting techniques, Jane has decided to present the cash flows from two recent proposals: the nano test tube project and the

To explain BioCom's capital budgeting techniques, Jane has decided to present the cash flows from two recent proposals: the nano test tube project and the microsurgery kit project. All figures are in thousands of dollars:

Time of Cash Flow

Nano Test Tubes

Microsurgery Kit

Investment

($12,000)

($12,000)

Year 1

2,000

5,000

Year 2

3,000

5,000

Year 3

4,000

5,000

Year 4

5,000

5,000

Year 5

7,000

5,000

A) Compute the internal rate of return (IRR) for Nano Test Tubes project. Enter the number as a decimal rounded to the nearest hundredth. For example if the answer was 15.2%, enter the answer in blackboard as 0.15.

B)Compute the internal rate of return (IRR) for Microsurgery Kit project. Enter the number as a decimal rounded to the nearest hundredth. For example if the answer was 15.2%, enter the answer in blackboard as 0.15.

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To compute the internal rate of return IRR for both projects we can use the following formula IRR FV ... blur-text-image
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