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In: Finance

Two mutually exclusive projects have the following forecasted cash flows:

  1. Two mutually exclusive projects have the following forecasted cash flows:

Year           A                      B

0                -20,000             -20,000

1                10,000                          0

2                10,000                          0

3                10,000                          0

4                10,000                60,000

  1. Compute the internal rate of return for each project.
  1. Compute the NPV for each project if the required rate is 10%.
  1. Which project should be accepted, and why?

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jeff jeffy answered 2 years ago
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