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You are analyzing proposed projects and have compiled the following information: WACC...

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Finance

  1. You are analyzing proposed projects and have compiled the following information:

    WACC (Required Return): 8.00%

    Year

    0

    1

    2

    3

    Project A CFs

    -$1,250,000

    $400,000

    $500,000

    $600,000

    Project B CFs

    -$1,250,000

    $500,000

    $500,000

    $500,000

    Compute the IRRs of these projects? Would the company accept one or both projects based on the IRR criterion?

    Accept Project A only

    Accept Project B only

    Accept both Project A and Project B

    Reject both Project A and Project B

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