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atroni [7]
3 years ago
13

Your division is considering two investment projects, each of which requires an up-front expenditure of $17 million. You estimat

e that the investments will produce the following net cash flows:
Year Project A Project B
1 $4,000,000 $20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000

Required:
a. What are the two projects' net present values, assuming the cost of capital is 5%?
b. What are the two projects' net present values, assuming the cost of capital is 10%?
c. What are the two projects' net present values, assuming the cost of capital is 15%?
d. What are the two projects' IRRs at these same costs of capital?
Business
1 answer:
denpristay [2]3 years ago
4 0

Answer:

A

Explanation:

trust the brain bro.....

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