Consider projects A and B: Cash Flows (dollars) Project C0 C1 C2 NPV at 10% A ?33,000 23,400 23,400 +$7,612 B ?53,000 36,000 36,000 +9,479 a. Calculate IRRs for A and B....

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Finance

Consider projects A and B:
Cash Flows (dollars)
Project C₀ C₁ C₂ NPV at 10%
A ?33,000 23,400 23,400 +$7,612
B ?53,000 36,000 36,000 +9,479
a. Calculate IRRs for A and B. (Do notround intermediate calculations. Enter your answers as a percentrounded to 2 decimal places.)

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4.2 Ratings (997 Votes)

Project A IRR is the rate at which NPV0 ie PV of inflows PV of outflows It is calculated by trial and error method Lets find NPV at say 26 Year Cashflow PVF26 CashflowPVF 0 33000 1 3300000 1 23400 07937 1857143 2 23400 06299 1473923 NPV PV of InflowsPV of Outflows See Answer

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Consider projects A and B: Cash Flows (dollars) Project C0 C1 C2 NPV at 10% A ?33,000 23,400 23,400 +$7,612 B ?53,000 36,000 36,000 +9,479 a. Calculate IRRs for A and B....

70.2K

Verified Solution

Question

Finance

Consider projects A and B:
Cash Flows (dollars)
Project C₀ C₁ C₂ NPV at 10%
A ?33,000 23,400 23,400 +$7,612
B ?53,000 36,000 36,000 +9,479
a. Calculate IRRs for A and B. (Do notround intermediate calculations. Enter your answers as a percentrounded to 2 decimal places.)

Answer & Explanation Solved by verified expert

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	Cash Flows (dollars)
Project	C₀	C₁	C₂	NPV at 10%
A	?33,000	23,400	23,400	+$7,612
B	?53,000	36,000	36,000	+9,479

Consider projects A and B: Cash Flows (dollars) Project C0 C1 C2 NPV at 10% A ?33,000 23,400 23,400 +$7,612 B ?53,000 36,000 36,000 +9,479 a. Calculate IRRs for A and B....

70.2K

Verified Solution

Question

Finance

Consider projects A and B:Cash Flows (dollars)ProjectC0C1C2NPV at 10%A?33,00023,40023,400+$7,612B?53,00036,00036,000+9,479a. Calculate IRRs for A and B. (Do notround intermediate calculations. Enter your answers as a percentrounded to 2 decimal places.)

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Other questions asked by students

Consider projects A and B:
Cash Flows (dollars)
Project C₀ C₁ C₂ NPV at 10%
A ?33,000 23,400 23,400 +$7,612
B ?53,000 36,000 36,000 +9,479
a. Calculate IRRs for A and B. (Do notround intermediate calculations. Enter your answers as a percentrounded to 2 decimal places.)