Year 0 1 2 3 4 5 6 Project A Cash flow -2500 900 800 1600 100 50 300 Project B Cash flow -2500 50 600 150 900 500 2500

Accounting Information Systems
11th Edition
ISBN:9781337552127
Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Chapter8: Controlling Information Systems: Introduction To Pervasive Controls
Section: Chapter Questions
Problem 18RQ
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Compute the IRR, NPV, PI, and payback period for the following two projects.  Assume the required return is 12%.

See the table attached.

Year
0
1
2
3
45
6
Project A
Cash flow
-2500
900
800
1600
100
50
300
Project B
Cash flow
-2500
50
600
150
900
500
2500
Transcribed Image Text:Year 0 1 2 3 45 6 Project A Cash flow -2500 900 800 1600 100 50 300 Project B Cash flow -2500 50 600 150 900 500 2500
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