Two mutually exclusive investment projects have the following forecasted cash flows

| September 10, 2016

Question
Two mutually exclusive investment projects have the following forecasted cash flows

Year A B

0 $-20,000 $-20,000

1 10,000 0

2 10,000 0

3 10,000 0

4 10,000 60,000

a. Compute the internal rate of return for each project,

b. Compute the net present value for each project if the firm has a 10% cost of capital

c. Which project should be adopted and why?

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now