Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached 1b) Ignoring the information in question (1a), assume instead that projects A and C are independent, Hardchoice is subject to capital rationing (i.e., it may not be able to afford both projects), and the relevant discount rate is 10%. a) What is the IRR of Project A? Project C? b) How would you rank Project A compared to Project C? Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks!
Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached
1b) Ignoring the information in question (1a), assume instead that projects A and C are independent, Hardchoice is subject to capital rationing (i.e., it may not be able to afford both projects), and the relevant discount rate is 10%.
a) What is the
b) How would you rank Project A compared to Project C?
Pls show formula used.
Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent.
Use timeline if necessary. No excel .Thanks!
Step by step
Solved in 2 steps