Question
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started