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%

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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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%
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