Question
You are presented with 2 investment projects: A and B. The cash flow and the initial investment are presented at the table below. Assume that
You are presented with 2 investment projects: A and B. The cash flow and the initial investment are presented at the table below. Assume that the discount rate is 12%. Calculate NPV and IRR for the both projects. If you have only $5,000 to invest which project will you undertake?
| Period | Project A | Project B |
| 0 | -5,000 | -5,000 |
| 1 | 2,000 | 3,400 |
| 2 | 5,000 | 3,400 |
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
