Question
Two new projects proposed by Theta Ltd have the following cash flows: End of Year Project CC Project DD 0 -6000 -6000 1 2000 1500
Two new projects proposed by Theta Ltd have the following cash flows:
End of Year | Project CC | Project DD |
0 | -6000 | -6000 |
1 | 2000 | 1500 |
2 | 2000 | 1500 |
3 | 2000 | 3000 |
4 | 2000 | 4000 |
Requirements:
Calculate the IRR for each project.
Determine the NPV at discount rates of 8%, 12%, and 20%.
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Corporate Finance
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
3rd Edition
0077173635, 9780077173630
