Hawkeye Corp has two investment opportunities with the following cash flows and IRRs. Hawkeye’s required return on each project is 9%. The projects are not mutually exclusive, so Hawkeye could invest in both projects if it wants to. Which projects should Hawkeye invest in using NPV?
Year 0 |
Year 1 |
Year2 |
|
Project A |
-$6,000 | $1,500 | $6,500 |
Project B | $2,000 | -$1,000 | -$1,500 |
Group of answer choices
Both projects A and B
Only project B
Only project A
Neither project
Mass Company is investing in a giant crane. It is expected to
cost 6.6 million in initial investment and it is expected to
generate an end of year cash flow of 3.0 million each year for
three years. Calculate the MIRR for the project if the cost of
capital is 12% APR.
Group of answer choices
15.3%
17.3%
23.8%
22.1%
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