A firm whose cost of capital is 10% is considering two mutually exclusive projects A and B, the cash flows of which are as below: 12 Year Project A Project B 50,000 62,500 Suggest which project should be taken up using (i) net present value method and (ii) the internal rate of return method. 80,000 96,170 1

A firm whose cost of capital is 10% is considering two mutually exclusive projects A and B, the cash flows of which are as below: 12 Year Project A Project B 50,000 62,500 Suggest which project should be taken up using (i) net present value method and (ii) the internal rate of return method. 80,000 96,170 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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