Question
You are considering the following mutually exclusive projects: Year Project 1 Project 2 0 -53,440 -85,640 1 22,730 34,520 2 18,580 40,160 3 24,220 26,700
You are considering the following mutually exclusive projects:
| Year | Project 1 | Project 2 |
|---|---|---|
| 0 | -53,440 | -85,640 |
| 1 | 22,730 | 34,520 |
| 2 | 18,580 | 40,160 |
| 3 | 24,220 | 26,700 |
| 4 | 12,260 | 21,440 |
Calculate the designated investment criteria. Assume the required return is 8.00% percent.
| Project 1 | Project 2 | |
|---|---|---|
| NPV | $ | $ |
| PP | years | years |
| IRR | % | % |
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
