Question
You've estimated the following cash flows (in $) for two mutually exclusive projects: Year Project A Project B 0 -5,700 -8,550 1 1,325 1,325 2
You've estimated the following cash flows (in $) for two mutually exclusive projects:
Year | Project A | Project B |
---|---|---|
0 | -5,700 | -8,550 |
1 | 1,325 | 1,325 |
2 | 2,148 | 2,148 |
3 | 4,325 | 8,273 |
The required return for both projects is 8%.
Part 1
What is the IRR for project A? (3+ decimals)
Part 2
What is the IRR for project B? (3+ decimals)
Part 3
Which project seems better according to the IRR method?
Project A
Project B
Submit
Part 4
What is the NPV for project A?
Part 5
What is the NPV for project B?
Part 6
Which project seems better according to the NPV method?
Project B
Project A
Submit
Part 7
Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept?
Project B
Project A
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