Consider the following cash flows of two mutually exclusive projects. Year Project A Cash Flow Project B Cash Flow (118,000) (12,000) 1 18,900 1,243 54,728 2,455 3 57,575 2,224 4 73,737 3,543 85,868 7,643 93,992 4,543 The required rate of return for both projects is 12% Blank #1: What is the IRR for A? Blank #2: What is the IRR for B? Blank #3: What is the NPV for A?

Consider the following cash flows of two mutually exclusive projects. Year Project A Cash Flow Project B Cash Flow (118,000) (12,000) 1 18,900 1,243 54,728 2,455 3 57,575 2,224 4 73,737 3,543 85,868 7,643 93,992 4,543 The required rate of return for both projects is 12% Blank #1: What is the IRR for A? Blank #2: What is the IRR for B? Blank #3: What is the NPV for A?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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