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In: Finance

You are considering the following two projects and can only take one. Your cost of capital...

You are considering the following two projects and can only take one. Your cost of capital is 10.6%. The cash flows for the two projects are as follows ($ million):
project a
year 0: -98
year 1: 22
year 2: 30
year 3: 39
year 4: 50

project b
year 0: -98
year 1: 50
year 2: 39
year 3: 30
year 4: 20

a: what is the IRR of each project
b: what is the NPV of each project at your cost of capital
c: at what cost of capital are you indifferent between the two projects
d: what should you do

please answer a-d

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Expert Solution

jeff jeffy answered 3 hours ago
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