Question
You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $55,000, and the initial cash
You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $55,000, and the initial cash outlay associated with project B is $75,000. The required rate of return on both projects is 12 percent.
| PROJECT A | PROJECT B |
| ||
| Initial Outlay | $55,000 | $75,000 | ||
| Inflow year 1 | 12,000 | 13,000 | ||
| Inflow year 2 | 12,000 | 13,000 | ||
| Inflow year 3 | 12,000 | 13,000 | ||
| Inflow year 4 | 12,000 | 13,000 | ||
| Inflow year 5 | 12,000 | 13,000 | ||
| Inflow year 6 | 12,000 | 13,000 | ||
a. Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted
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The Handbook Of Alternative Assets
Authors: Peter Temple
1st Edition
161477076X, 978-1906659219
