Year Cash Flow (A) Cash Flow (B) -$36,400 18,710 -$36,400 6,310 14,210 12,810 11,710 19,310 8,710 23,310 a. What is the IRR for Project A? 01234 IRR b. What is the IRR for Project B? IRR

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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Bruin, Incorporated, has identified the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0
-$36,400
-$ 36,400
1
18,710
6,310
14,210
12,810
11,710
19,310
8,710
23,310
a. What is the IRR for Project A?
234
IRR
b. What is the IRR for Project B?
IRR
Transcribed Image Text:Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$36,400 -$ 36,400 1 18,710 6,310 14,210 12,810 11,710 19,310 8,710 23,310 a. What is the IRR for Project A? 234 IRR b. What is the IRR for Project B? IRR
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