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UESTION 1 Use the following table which shows the cash flows of three independent projects to answer the next three questions. Year Cash Flows: Project

UESTION 1

Use the following table which shows the cash flows of three independent projects to answer the next three questions.

Year

Cash Flows: Project A

Cash Flows: Project B

Cash Flows: Project C

0

-50

-75

-60

1

25

40

30

2

10

50

10

3

40

10

50

Cost of capital for each project is 15%

Find project A's internal rate of return. Round your final answer to four decimals.

.1963

.2108

.2684

.1467

None of the above

6.25 points

QUESTION 2

Find project C's NPV. Round your final answer to two decimals. Do not use the dollar sign when entering your answer.

6.25 points

QUESTION 3

Which project(s) would you choose based on IRR?

A

B

A&B

A&C

B&C

A,B,C

None of the above

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