Question
you are considering the following two projects and can take only one. your cost capital is 10.9%. the cash flows for the two projects are
you are considering the following two projects and can take only one. your cost capital is 10.9%. the cash flows for the two projects are as follows.
Project. year0. year1 year2. year3. year4
A. - $101. $23. $30. $42. $51
B. - $101. $51. $42. $30. $18
a)What is the IRR of each project? b)What is the NPV of each project at your cost capital? c)at what cost of capital are you indifferent between the two projects? d)what should you do?
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
