Consider projects a and bcash flows dollarsprojectc0c1c2npv, Ask an Expert

Finance

Consider projects A and B:

Cash Flows (dollars)

ProjectC0C1C2NPV at 12%

A−40,000 29,000 29,000 +$9,011

B−60,000 43,000 43,000 +12,672

a. Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Project IRR A % B %

b. Which project does the IRR rule suggest is best? Project A Project B

c. Which project is really best? Project A Project B

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91793226

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