Question
Totally Serial Enterprises is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below. Year ManBearPig Project Cash Flow
Totally Serial Enterprises is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
| Year | ManBearPig Project Cash Flow | Solar Car Cash Flow |
| 0 | -$100,000 | -$200,000 |
| 1 | 30,000 | 55,000 |
| 2 | 30,000 | 55,000 |
| 3 | 45,000 | 75,000 |
| 4 | 45,000 | 90,000 |
What is ManBearPigs internal rate of return (IRR) at a 12% cost of capital?
| A. | 12.49% | |
| B. | 12.00% | |
| C. | 15.05% | |
| D. | 12.76% | |
| E. | 16.84% |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin
2nd Edition
0321014650, 9780321014658
