Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 13 percent.   Year Project M Project N 0 –$144,000      –$351,000      1 63,100      154,500      2 81,100      176,000      3 72,100      139,500      4 58,100      106,000            a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept?

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
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Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 13 percent.

 
Year Project M Project N
0 –$144,000      –$351,000     
1 63,100      154,500     
2 81,100      176,000     
3 72,100      139,500     
4 58,100      106,000     
 
   
a.

What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c. Which, if either, of the projects should the company accept?
   

 

 

 

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