In: Finance
1.1 A company with a cost of capital of 20% has identified projects with the following cash flows:
Year | Project C | Project D |
0 | -N$100 000 | -N$30 000 |
1 | 40 000 | 10 000 |
2 | 45 000 | 15 000 |
3 | 50 000 | 20 000 |
4 | 55 000 | 25 000 |
Required 1:
A. Calculate the NPV and IRR of each project.