Question
You have $200,000 to invest in one of the following two projects. The projected cash inflows are: Year Project C Project D 1 $80,000 $70,000
You have $200,000 to invest in one of the following two projects. The projected cash inflows are:
Year | Project C | Project D |
1 | $80,000 | $70,000 |
2 | $90,000 | $80,000 |
3 | $100,000 | $90,000 |
a. Calculate the NPV for both projects if the discount rate is 10%. b. Determine the IRR for both projects. c. Calculate the profitability index for both projects. d. Evaluate the payback period for each project. e. If you can only invest in one project, which one should it be and why?
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Introduction To Financial Accounting
Authors: Anne Marie Ward, Andrew Thomas
7th edition
77138449, 978-0077132682, 77132688, 978-0077138448
