Projects using both npv method and irr method

Assignment Help Financial Management

Reference no: EM131907446

Butler Co. is considering two mutually exclusive projects (Project A and Project B) with the following projected cash flows: Year 0 1 2 3 4 Project A cash flows -$10,000 $2,500 $3,500 $4,500 $5,000 Project B cash flows −$50,000 $10,000 $16,000 $19,000 $21,000 The WACC for both projects is 8%. Butler performed an analysis of these projects using both the NPV method and the IRR method, with the following results: NPV (Project A) = $2,563 IRR (Project A) = 17.77% NPV (Project B) = $3,495 IRR (Project B) = 10.77% What decision should be made regarding these projects, and why?

Reference no: EM131907446

Questions Cloud

What is the project discounted payback : What is the project's discounted payback (rounded to two decimal places)?

Which challenge is bad for the defendant : There are two kinds of challenges the prosecutor and the defense lawyer can use when selecting a jury. How do these challenges differ?

Making the accept-reject decision for independent projects : Which method of evaluating capital projects is best for making the accept/reject decision for independent projects

Was constitutional right to trial by jury of peers violated : X, a man accused of rape, was tried and convicted by a jury made up of all women. Was his constitutional right to trial by a jury of peers violated?

Projects using both npv method and irr method : Butler performed an analysis of these projects using both the NPV method and the IRR method, with the following results:

What is the meaning of effective assistance of counsel : What is the meaning of the phrase "effective assistance of counsel"? Discuss why it is hard for prisoners to prove that their lawyer during trial.

What is the company expected growth rate : What is the company's expected growth rate? what portion of its net income is the firm expected to pay out as dividends?

Research and analysis of the concept of risk develop : MGT 60035 Assessment - Perceptions of risk in a complex world. Drawing on independent research and analysis of the concept of risk develop

What does the brady rule say : What does the Brady rule say? How has the Brady rule been broadened or narrowed by subsequent Court decisions? State the current rule.

User Account

All Pages