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What are the two project net present values

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Question - Your division is considering two investment projects, each of which requires an up-front expenditure of 20 million. You estimate that the investment will produce the following net cash flows:

Year

Project A

Project B

1

$5,000,000

$20,000,000

2

10,000,000

10,000,000

3

20,000,000

6,000,000

Required -

What are the two project's net present values, assuming the cost of capital is 5%? 10%? 15%?

What are the two projects' IRRs at these same costs of capital?

Reference no: EM132697786

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