Question
Use the following information two mutually exclusive projects, Project A and Project B, for the next five questions. A B Year 0 -1300 -1000 Year
Use the following information two mutually exclusive projects, Project A and Project B, for the next five questions.
| A | B | |
| Year 0 | -1300 | -1000 |
| Year 1 | 750 | 500 |
| Year 2 | 600 | 400 |
| Year 3 | 500 | 600 |
The discount rate is 14%.
The NPV of A is $ and the NPV of B is $ .
Round-off the answer to an INTEGER.
5. Calculate the IRR of Project A.
6. Calculate the IRR of Project B.
Step by Step Solution
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Step: 1
SOLUTION To calculate the net present value NPV of Project A and Project B we need to ...
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Practical Management Science
Authors: Wayne L. Winston, Christian Albright
5th Edition
1305631540, 1305631544, 1305250907, 978-1305250901
