Question
You are considering investment opportunity in Project A, B, and C Project T=0 T=1 T=2 T=3 T=4 T=5 5=6 T=7 T=8 A -120 20 20
You are considering investment opportunity in Project A, B, and C
Project | T=0 | T=1 | T=2 | T=3 | T=4 | T=5 | 5=6 | T=7 | T=8 |
A | -120 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 |
B | -150 | 28 | 28 | 28 | 28 | 28 | 28 | 28 |
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C | -200 | 50 | 50 | 100 |
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Project | NPV@8% | IRR |
A |
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B |
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C |
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According to NPV rule, which project do you recommend undertaking if A, B, and C are non-mutually exclusive? Explain why? Assuming that the discount rate is 8%
According to NPV rule, which project do you recommend undertaking if A, B, and C are mutually exclusive? Explain why? Assuming that the discount rate is 8%
According to IRR rule, which project do you recommend undertaking if A, B, and C are non-mutually exclusive? Explain why? Assuming that the discount rate is 8%
According to IRR rule, which project do you recommend undertaking if A, B, and C are mutually exclusive? Explain why? Assuming that the discount rate is 8%
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