Question
Intro You've estimated the following cash flows (in $) for two mutually exclusive projects: Year Project...
Intro
You've estimated the following cash flows (in $) for two mutually exclusive projects:
| Year | Project A | Project B |
| 0 | -5,500 | -8,250 |
| 1 | 1,325 | 1,325 |
| 2 | 2,148 | 2,148 |
| 3 | 4,010 | 7,918 |
The required return for both projects is 8%.
Attempt 1/10 for 10 pts.
Part 1
What is the IRR for project A?
Submit
Attempt 1/10 for 10 pts.
Part 2
What is the IRR for project B?
Submit
Attempt 1/5 for 10 pts.
Part 3
Which project seems better according to the IRR method?
Project B
Project A
Submit
Attempt 1/10 for 10 pts.
Part 4
What is the NPV for project A?
Submit
Attempt 1/10 for 10 pts.
Part 5
What is the NPV for project B?
Submit
Attempt 1/5 for 10 pts.
Part 6
Which project seems better according to the NPV method?
Project A
Project B
Submit
Attempt 1/5 for 10 pts.
Part 7
Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept?
Project B
Project A
Can you answer all parts?
Homework Answers
Answer #1
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Attempt 1/1 for 10 pts.
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Attempt 1/1 for 10 pts.
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