Question
In: Finance
OpenSea, Inc. is evaluating investment opportunities and should decide between two mutually exclusive projects: A, or...
OpenSea, Inc. is evaluating investment opportunities and should decide between two mutually exclusive projects: A, or B. Both projects require the same initial investments 14 million and generate different cash flows as follow: -Project (A) generates 3.0 million per year in a perpetuity - Project (B) generates 1.9 million in perpetuity growing at 2.2% (forever)
- If OpenSea is using the IRR to make her final decision, calculate the IRR of each of the following project.
- Calculate the NPV of both project if the required rate is 10%
- Calculate the crossover rate (If existing)
- Graph the NPV function of both project and discuss (You can use excel and then insert your Graph here)
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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