Question
You've estimated the following cash flows (in $) for two projects: A B C 1 Year Project A Project B 2 0 -72 -255 3
You've estimated the following cash flows (in $) for two projects: A B C 1 Year Project A Project B 2 0 -72 -255 3 1 15 50 4 2 21 73 5 3 29 82 6 4 25.65 114.62 The required return is 7% for both projects. Attempt 1/10 for 10 pts.
Part 1 What is the IRR for project A? 4+ decimals Attempt 1/10 for 10 pts.
Part 2 What is the IRR for project B? 4+ decimals Attempt 1/10 for 10 pts.
Part 3 What is the NPV of project A? 2+ decimals Attempt 1/10 for 10 pts.
Part 4 What is the NPV of project B? 2+ decimals Attempt 1/5 for 10 pts.
Part 5 If the projects are mutually exclusive, which project should you choose? Project B, based on the NPV Project B, based on the IRR Project A, based on the IRR Project A, based on the NPV
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