1. A company has been presented with the two investment opportunity. Project 1: The investment outlay...

1. A company has been presented with the two investment opportunity. Project 1: The investment outlay is expected to be $130,000 in Year 0. After that, the project is expected to earn operating cash flows of $40,000 per year for the next 4 years. Project 2: The investment outlay is expected to be $125,000 in Year 0. After that, the project is expected to earn operating cash flows of $37,000 per year for the next 4 years. If your cost of capital is 8%, what are the NPV and IRR for both projects?

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jeff jeffy answered 1 year ago

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