Question
Your boss hands you the following information for a pair of mutually exclusive projects and asks for your recommendation. What should you do? Cash Flows
Your boss hands you the following information for a pair of mutually exclusive projects and asks for your recommendation. What should you do?
|
|
|
| Cash Flows | |||
| Project | Cost of Capital | IRR | Year 0 | Year 1 | Year 2 | Year 3 |
| A | 12% | 26% | $ 10,000 | $ 9000 | $ 3000 | $ 2000 |
| B | 12% | 25% | $ 10,000 | $ 2700 | $ 5000 | $ 9000 |
The NPV of project A is $
, and the NPV of project B is $
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Surviving In General Management
Authors: Philip Berman, Pauline Fielding
1st Edition
9780333483145
