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Capital Budgeting Criteria

A company has a 12% WACC and is considering two mutually exclusive investment (that cannot be repeated) with the following cas flows:

0 1 2 3 4 5 6 7

Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180  

Project B -$405 -$134 $134 $134 $134 $134 $134 $0

A. What is each project's NPV ?

B. What is each project's IRR ?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91266540

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