Question
Two new projects proposed by Omega Ltd have the following cash flows: End of Year Project I Project J 0 -7000 -7000 1 3000 2000
Two new projects proposed by Omega Ltd have the following cash flows:
End of Year | Project I | Project J |
0 | -7000 | -7000 |
1 | 3000 | 2000 |
2 | 2000 | 2000 |
3 | 2000 | 4000 |
4 | 2000 | 5000 |
Requirements:
- Calculate the IRR for each project.
- Determine the NPV at discount rates of 10%, 15%, and 25%.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
