You've estimated the following cash flows (in $) for two mutually exclusive projects:
Year Project A Project B
0 -5,500 -8,250
1 1,325 1,325
2 2,148 2,148
3 4,060 7,811
The required return for both projects is 8%.
Attempt 1/5 for 10 pts.
Part 1
What is the IRR for project A?
Submit
Attempt 1/5 for 10 pts.
Part 2
What is the IRR for project B?
Submit
Attempt 1/5 for 10 pts.
Part 3
Which project seems better according to the IRR method?
Project A
Project B
Submit
Attempt 1/5 for 10 pts.
Part 4
What is the NPV for project A?
Submit
Attempt 1/5 for 10 pts.
Part 5
What is the NPV for project B?
Submit
Attempt 1/5 for 10 pts.
Part 6
Which project seems better according to the NPV method?
Project B
Project A
Submit
Attempt 1/5 for 10 pts.
Part 7
Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept?
Project A
Project B
