A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Years 1 3 4 S -1,100 900 350 50 10 L -1,100 300 500 850 The company's cost of capital is 12 percent, and it can get an unlimited amount of capital at that cost. What is the NPV and regular IRR (not MIRR) of the projects?
A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Years 1 3 4 S -1,100 900 350 50 10 L -1,100 300 500 850 The company's cost of capital is 12 percent, and it can get an unlimited amount of capital at that cost. What is the NPV and regular IRR (not MIRR) of the projects?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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