Bernie's restaurant is considering two different cash flow management programs in the table below: A if...

Bernie's restaurant is considering two different cash flow management programs in the table below:

A if the required rate of return is 15%, calculate the net present value (net present value) of the two projects

.present value (NPV)

B. calculate the internal rate of return (IRR) of these two projects

C. calculation of the two projects profitability index (profitability index)

D. which project should Bernie adopt? Why is that?

Bernie's Restaurants Capital Budgeting Projects

Burney restaurant capital budget project

Net cash flow of item A net cash flow of item B net cash flow of item A

0 - $90000 - $100000

1 $40,000 $50,000

2 $40,000 $50,000

3 $40,000 $50,000

4 $40,000 $50.000

Expert Solution

jeff jeffy answered 3 months ago

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