In: Finance
QUESTION 21
Year |
Project 1 |
Project 2 |
0 |
(3,000.00) |
(2,400.00) |
1 |
1,000.00 |
1,500.00 |
2 |
?? |
800.00 |
3 |
1,500.00 |
?? |
4 |
1,800.00 |
1,400.00 |
IRR |
26.2307% |
33.8369% |
a. |
8.4261% |
|
b. |
8.2041% |
|
c. |
7.6739% |
PV FACTOR SHORT CUT :
FOR 26.2307%
FIRST YEAR = 1/(1+0.262307) = 0.7922
SECOND YEAR = 1/(1+0.262307)^2 = 0.6276
SAME WAY FOR OTHER YEARS AND OTHER PROJECT