Question
Your division is considering two investment projects, each of which requires an up-front expenditure of $19 million. You estimate that the investments will produce the
Your division is considering two investment projects, each of which requires an up-front expenditure of $19 million. You estimate that the investments will produce the following net cash flows:
| Year | Project A | Project B |
| 1 | $ 5,000,000 | $20,000,000 |
| 2 | 10,000,000 | 10,000,000 |
| 3 | 20,000,000 | 7,000,000 |
What are the two projects' net present values, assuming the cost of capital is 5%? Round your answers to the nearest dollar.
Project A $
Project B $
What are the two projects' net present values, assuming the cost of capital is 10%? Round your answers to the nearest dollar.
Project A $
Project B $
What are the two projects' net present values, assuming the cost of capital is 15%? Round your answers to the nearest dollar.
Project A $
Project B $
What are the two projects' IRRs at these same costs of capital? Round your answers to two decimal places.
Project A %
Project B %
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Routledge Handbook Of Social And Sustainable Finance
Authors: Othmar M. Lehner
1st Edition
1138343773, 978-1138343771
