FOlTowing is Informaion on two aiternative Investments belng considered by Jolee Company. The company requires a 10% return from ts Investments. Project A $(196,000) Project B $(141, 000) Initial investment Expected net cash flows in: Year 1 49,000 65,000 89, 295 99,400 74,000 41,000 Year 2 59,000 Year 3 75, 000 75,000 75, 000 Year 4 Year 5 Compute the Internal rate of return for each of the projects using excel functlons. (Round your answers to 2 declmal places.) IRR Project A Project B

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
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-ollowlng Is Information on two alternative Investments belng considered by Jolee Company. The company requires a 10% return from
Its Investments.
Project A
$(196,000)
Project B
$(141, 000)
Initial investment
Expected net cash flows in:
Year 1
49,000
65,000
89,295
41,000
59,000
75, 000
75,000
75,000
Year 2
Year 3
Year 4
99,400
74,000
Year 5
Compute the Internal rate of return for each of the projects using excel functlons. (Round your answers to 2 declmal places.)
IRR
Project A
%
Project B
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Transcribed Image Text:-ollowlng Is Information on two alternative Investments belng considered by Jolee Company. The company requires a 10% return from Its Investments. Project A $(196,000) Project B $(141, 000) Initial investment Expected net cash flows in: Year 1 49,000 65,000 89,295 41,000 59,000 75, 000 75,000 75,000 Year 2 Year 3 Year 4 99,400 74,000 Year 5 Compute the Internal rate of return for each of the projects using excel functlons. (Round your answers to 2 declmal places.) IRR Project A % Project B < Prev 9 of 9 Next L Type here to search F11 F1 F6 F7 F8 F9 F10 F2 F3 F4 F5 F1 23 1 2 4. 7 8 T Y U P G K S C N M B EI
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