Question
Year Project S Project L Crossover 0 ($6,000) ($6,000) 0 1 3,000 600 2,400 2 2,400 1,800 600 3 1,800 2,400 -600 4 600 3,600
| Year | Project S | Project L | Crossover |
| 0 | ($6,000) | ($6,000) | 0 |
| 1 | 3,000 | 600 | 2,400 |
| 2 | 2,400 | 1,800 | 600 |
| 3 | 1,800 | 2,400 | -600 |
| 4 | 600 | 3,600 | -3,000 |
| IRR | 14.49% | 11.79% | 7.17% |
| Discount Rate | NPV S | NPV L |
| 0.00% | ||
| 1.00% | ||
| 2.00% | ||
| 3.00% | ||
| 4.00% | ||
| 5.00% | ||
| 6.00% | ||
| 7.00% | ||
| 8.00% | ||
| 9.00% | ||
| 10.00% | ||
| 11.00% | ||
| 12.00% | ||
| 13.00% | ||
| 14.00% | ||
| 15.00% | ||
| 16.00% | ||
| 17.00% | ||
| 18.00% | ||
| 19.00% | ||
| 20.00% | ||
| 21.00% | ||
| 22.00% | ||
| 23.00% | ||
| 24.00% |
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
9th Edition
032431986X, 9780324319866
