Question 18 of 30 -10 \table[[0,- $319,809, - $427,448 Question 18 of 30 > 0 - $319,809 - $427,448 1 129,300 158,190 2 129,300 172,830 3 129,300 179,500 4 129,300 138,800 5 129,300 119,800 C C -/ 0. a. Calculate the projects' NPV. (Enter negative amounts using negative sign e.g. -45.25. Do not round discount other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.) The NPV of project A is $ 150124 and project B is $ b. Calculate the projects' IRR. (Round answer to 2 decimal places, e.g. 15.25%.) The IRR of Project A is % and Project B is c. Which project should be chosen based on NPV? Based on IRR? Is there a conflict? Cullumber should choose 139951 %.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
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Question 18 of 30 -10 \table[[0,- $319,809, - $427,448
Question 18 of 30
>
0 - $319,809
- $427,448
1
129,300
158,190
2 129,300
172,830
3
129,300
179,500
4
129,300
138,800
5
129,300
119,800
C
C
-/ 0.
a. Calculate the projects' NPV. (Enter negative amounts using negative sign e.g. -45.25. Do not round discount
other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)
The NPV of project A is $
150124
and project B is $
b. Calculate the projects' IRR. (Round answer to 2 decimal places, e.g. 15.25%.)
The IRR of Project A is
% and Project B is
c. Which project should be chosen based on NPV? Based on IRR? Is there a conflict?
Cullumber should choose
139951
%.
Transcribed Image Text:Question 18 of 30 -10 \table[[0,- $319,809, - $427,448 Question 18 of 30 > 0 - $319,809 - $427,448 1 129,300 158,190 2 129,300 172,830 3 129,300 179,500 4 129,300 138,800 5 129,300 119,800 C C -/ 0. a. Calculate the projects' NPV. (Enter negative amounts using negative sign e.g. -45.25. Do not round discount other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.) The NPV of project A is $ 150124 and project B is $ b. Calculate the projects' IRR. (Round answer to 2 decimal places, e.g. 15.25%.) The IRR of Project A is % and Project B is c. Which project should be chosen based on NPV? Based on IRR? Is there a conflict? Cullumber should choose 139951 %.
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