Consider the following two mutually exclusive projects: If the discount rate is 10%, what are the NPV of Project A and the IRR of Project B? Cash Flows ($) Project C0 C1 C2 C3 A -90 +60 +50 0 B -100 0 0 +140 Multiple Choice Then NPV for project A is $5.9 and the IRR for project B is 11.9% Then NPV for project A is $8 and the IRR for project B is 9% Then NPV for project A is $20 and the IRR for project B is 11.9% Then NPV for project A is $5.9 and the IRR for project B is 11.9%
Consider the following two mutually exclusive projects: If the discount rate is 10%, what are the NPV of Project A and the IRR of Project B? Cash Flows ($) Project C0 C1 C2 C3 A -90 +60 +50 0 B -100 0 0 +140 Multiple Choice Then NPV for project A is $5.9 and the IRR for project B is 11.9% Then NPV for project A is $8 and the IRR for project B is 9% Then NPV for project A is $20 and the IRR for project B is 11.9% Then NPV for project A is $5.9 and the IRR for project B is 11.9%
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 15P
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Question
Consider the following two mutually exclusive projects:
If the discount rate is 10%, what are the
Cash Flows ($) |
||||
Project |
C0 |
C1 |
C2 |
C3 |
A |
-90 |
+60 |
+50 |
0 |
B |
-100 |
0 |
0 |
+140 |
Multiple Choice
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