Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 18 percent Project M -$137,000 64,800 82,800 73,800 59,800 Year Project N -$368,000 146,000 193,000 131,000 123,000 a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? Project M Project N b. Project M a. Project N c. Accept project 11234

Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 18 percent Project M -$137,000 64,800 82,800 73,800 59,800 Year Project N -$368,000 146,000 193,000 131,000 123,000 a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? Project M Project N b. Project M a. Project N c. Accept project 11234

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 15P

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