Solution-What is the npv and irr of the two projects

What is the npv and irr of the two projects

Assignment Help Finance Basics

Reference no: EM131360384

Projects 1 and 2 have similar outlays, although the patterns of future cash flows are different. The cash flows as well as the NPV and IRR for the two projects are shown below. For both projects, the required rate of return is 10 percent.

Year	CF for Project 1	CF for Project 2
0	$(50.00)	$(50.00)
1	$20.00	$0
2	$20.00	$0
3	$20.00	$0
4	$20.00	$100.00

1. What is the NPV and IRR of the two projects?

2. If the two projects are mutually exclusive, what is the appropriate investment decision?

3. Would your answer change if the projects were independent?

Reference no: EM131360384

Questions Cloud

The field personnel in the proper manner : You are asked to determine if the material is a hazardous waste and to instruct the field personnel in the proper manner of handling and disposing of the material. What are your recommendations?

Calculate this discount somewhere in the unit total column : ITEC 1001- Calculate this discount somewhere in the unit total column. Do not alter the mark-up percent! Shipping cost will be twenty cents per frisbee.

What are the basic assumptions of each theory approach : Select one emotion- or sensation-related theory and one thought-related theory to apply to a case study:Theories related to emotions or sensations:Person-centered therapy,Existential psychotherapy,Gestalt therapy,Theories related to thoughts:Rational..

Fair market value of a commercial or residential property : Share at least one additional technique to determine the fair market value of a commercial or residential property. Assume you have determined that you want to acquire the property. Develop at least three strategic plans as to how you might acquire ..

What is the npv and irr of the two projects : 1. What is the NPV and IRR of the two projects? 2. If the two projects are mutually exclusive, what is the appropriate investment decision? 3. Would your answer change if the projects were independent?

Describe disaster planning : Describe Disaster Planning - 2 pages, (c) Highlight the importance of the integration of both backups and disaster planning and the impact if both are not effectively executed - 1 page

Discuss the philosophical origins of each approach : Discuss the philosophical origins of each approach.Identify the goals of each approach.Describe the techniques and strategies used by each approach.Explain how each approach affects the treatment strategies for your selected disorder.

Conventional cash flow pattern : You are reviewing a profitable investment project that has a conventional cash flow pattern. Suppose that the cash flows for the project, initial outlay, and future after-tax cash flows all double, you would predict that

Additional after-tax salvage value : ABC Corporation is considering an investment of €375 million with expected after-tax cash inflows of €115 million per year for seven years and an additional after-tax salvage value of €50 million in Year 7. The required rate of return is 10 percen..

User Account

All Pages

What is the npv and irr of the two projects

Reference no: EM131360384

Reference no: EM131360384

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT