Question
Year Project A Project B 0 -$15,000 -$20,000 1 $5,000 $7,000 2 $6,000 $8,000 3 $7,000 $9,000 4 $8,000 $10,000 5 $9,000 $11,000 (a) Calculate
Year | Project A | Project B |
0 | -$15,000 | -$20,000 |
1 | $5,000 | $7,000 |
2 | $6,000 | $8,000 |
3 | $7,000 | $9,000 |
4 | $8,000 | $10,000 |
5 | $9,000 | $11,000 |
(a) Calculate the NPV for each project using a discount rate of 10%. (b) Determine the IRR for each project. (c) State your accept/reject decision if the projects are mutually exclusive. (d) What is your accept/reject decision if the projects are independent?
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Introduction To Financial Accounting
Authors: Anne Marie Ward, Andrew Thomas
7th edition
77138449, 978-0077132682, 77132688, 978-0077138448
