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PKP World is considering two mutually exclusive projects. The required rate of return on these projects is 11%. The maximum allowable payback period for the project is 3.5 years. The two projects provide the following set of after-tax net cash flows: Project A Project B Initial outlay (RM600,000) (RM600,000) Inflow year 1 185,000 150,000 Inflow year 2 185,000 160,000 Inflow year 3 185,000 240,000 Inflow year 4 185,000 250,000

PKP World is considering two mutually exclusive projects. The required rate of return on these projects is 11%. The maximum allowable payback period for the project is 3.5 years. The two projects provide the following set of after-tax net cash flows: Project A Project B Initial outlay (RM600,000) (RM600,000) Inflow year 1 185,000 150,000 Inflow year 2 185,000 160,000 Inflow year 3 185,000 240,000 Inflow year 4 185,000 250,000

Essentials Of Investments
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
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3d. Calculate the internal rate of return (IRR) for each project.


Note: No need excle formula, thank you 

PKP World is considering two mutually exclusive projects. The required rate of return on these projects is 11%. The maximum allowable payback period for the project is 3.5 years. The two projects provide the following set of after-tax net cash flows: Project A Project B Initial outlay (RM600,000) (RM600,000) Inflow year 1 185,000 150,000 Inflow year 2 185,000 160,000 Inflow year 3 185,000 240,000 Inflow year 4 185,000 250,000
Transcribed Image Text:PKP World is considering two mutually exclusive projects. The required rate of return on these projects is 11%. The maximum allowable payback period for the project is 3.5 years. The two projects provide the following set of after-tax net cash flows: Project A Project B Initial outlay (RM600,000) (RM600,000) Inflow year 1 185,000 150,000 Inflow year 2 185,000 160,000 Inflow year 3 185,000 240,000 Inflow year 4 185,000 250,000
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