If the opportunity cost of capital of 4%, Following information relate to the cash flow of below three projects proposals. Project Year: 0 1 2 3 X -$40,000 +20,000 +18,000 +25,000 Y -$65,000 +15,000 +30,000 +35,000 Z -70000 25,000 25,000 30,000 ِِA.If the discount rate 4%, which project will be acceptable under the discount payback period? B. With help of scientific calculator or excel program, calculate the IRR for project X and Y?
If the opportunity cost of capital of 4%, Following information relate to the cash flow of below three projects proposals. Project Year: 0 1 2 3 X -$40,000 +20,000 +18,000 +25,000 Y -$65,000 +15,000 +30,000 +35,000 Z -70000 25,000 25,000 30,000 ِِA.If the discount rate 4%, which project will be acceptable under the discount payback period? B. With help of scientific calculator or excel program, calculate the IRR for project X and Y?
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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- If the
opportunity cost of capital of 4%, Following information relate to the cash flow of below three projects proposals.
|
Project |
Year: 0 |
1 |
2 |
3 |
|
X |
-$40,000 |
+20,000 |
+18,000 |
+25,000 |
|
Y
|
-$65,000 |
+15,000 |
+30,000 |
+35,000 |
|
Z
|
-70000 |
25,000 |
25,000 |
30,000 |
ِِA.If the discount rate 4%, which project will be acceptable under the discount payback period?
B. With help of scientific calculator or excel program, calculate the
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