Question
You are choosing between two projects. The cash flows for the project are given in the following table ($ million) : Project Year 0 Year
You are choosing between two projects. The cash flows for the project are given in the following table ($ million) :
Project Year 0 Year 1 Year 2 Year 3 Year 4
A -$52 $26 $18 $19 $17
B -$102 $19 $40 $48 $61
A. What are the IRRS of the two projects?
B. If your discount rate is 4.7%, what are the NPV of the two project's?
C. Why do IRR and NPV rank the two projects differently?
Step by Step Solution
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Part A IRR To calculate IRR you need to put the value of NPV a...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
