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Year Project A Project B 0 -400.00 -670 1 -528.00 210 2 -219.00 210 3 -250.00 210 4 1100.00 210 5 820.00 210 6 990.00
| Year | Project A | Project B |
|---|---|---|
| 0 | -400.00 | -670 |
| 1 | -528.00 | 210 |
| 2 | -219.00 | 210 |
| 3 | -250.00 | 210 |
| 4 | 1100.00 | 210 |
| 5 | 820.00 | 210 |
| 6 | 990.00 | 210 |
| 7 | -325.00 | 210 |
- What is each projects IRR?
- If each projects cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?
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