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Better health inc is evaluating two investment projects

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Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $1.5 million. The projects are expected to produce the following net cash inflows:

Year Project A Project B
0 -1,500,000 -1,500,000
1 $500,000 $2,000,000
2 $1,000,000 $1,000,000
3 $2,000,000 $600,000

a. What is each project's IRR?
b. What is each project's NPV if the cost of capital is 10 percent? 5 percent? 15 percent?

 

Reference no: EM13574650

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