Question
Your division is considering two investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments will produce the
Your division is considering two investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments will produce the following net cash flows:
YearprojectAprojectB
1$5,000,000$20,000,000
210,000,00010,000,000
320,000,0006,000,000
What are the two projects IRR's if the cost of capital is 5%, 10%, and 15%?
What are the two projects IRR At these same cost capital?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
