Question
You are considering investing in two projects. Details regarding each project's cash flows from the assets are shown in the table below. Project A
You are considering investing in two projects. Details regarding each project's cash flows from the assets are shown in the table below. Project A has a required rate of return of 13%. Project B has a required rate of return of 15%. Year 0 81234 Project A's Cash flows Project B's Cash Flows -2,500 550 950 1,350 -5.000 1,000 1,500 2800 4 3500 1,900 1.The discounted payback period for the project A is: 2. What is the NPV of the project B? 3.What is the IRR of the project A? When comparing two projects always use the NPV first. Also remember that the payback method is biased towards short-term projects.
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Precalculus
Authors: Michael Sullivan
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321716835, 321716833, 978-0321716835
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