Homework Chapter 10 Homework Score 0 of 30 pts P1023 simila

Homework: Chapter 10 - Homework Score: 0 of 30 pts P10-23 (similar to) O Type here to search

Solution

Project A:

NPV = 23,153.77

IRR = 12.80%

Project B:

NPV = 21,949.18

IRR = 19.69%

Discount rate	8.0000%
Cash flows	Year	Discounted CF= cash flows/(1+rate)^year	Cumulative cash flow
(150,000.00)	0	(150,000.00)	(150,000.00)
20,000.000	1	18,518.52	(131,481.48)
35,000.000	2	30,006.86	(101,474.62)
50,000.000	3	39,691.61	(61,783.01)
60,000.000	4	44,101.79	(17,681.22)
60,000.000	5	40,834.99	23,153.77