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Year 0 (Initial investment) Year 1 Year 2 Year 3 Year 4 Year 5 Project A $(55,000) $12,000 14,000 23,000 24,000 31,000 Project B $(105,000)
Year 0 (Initial investment) Year 1 Year 2 Year 3 Year 4 Year 5 Project A $(55,000) $12,000 14,000 23,000 24,000 31,000 Project B $(105,000) $30,000 30,000 30,000 30,000 30,000 Project C $(460,000) $250,000 250,000 250,000 Print Done ect your answer(s). (Related to Checkpoint 11.1 and Checkpoint 11.4) (IRR and NPV calculation) The cash flows for three independent projects are found below: a. Calculate the IRR for each of the projects. b. If the discount rate for all three projects is 20 percent, which project or projects would you want to undertake? c. What is the net present value of each of the projects where the appropriate discount rate is 20 percent? a. The IRR of Project A is %. (Round to two decimal places.) The IRR of Project B is %. (Round to two decimal places.) The IRR of Project Cis%. (Round to two decimal places.) b. If the discount rate for all three projects is 20%, which project or projects would you want to undertake? (Select the best choice below.) A. Project A and Project C B. Project A and Project B O C. Project A, Project B, and Project C D. None of the projects c. The net present value of Project A where the appropriate discount rate is 20% is $ (Round to the nearest dollar.) The net present value of Project B where the appropriate discount rate is 20% is $ (Round to the nearest dollar.) The net present value of Project C where the appropriate discount rate is 20% is $ (Round to the nearest dollar.)
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