You are given the following information about the cash flows for Projects A and B: Project B -$12.643.00 $6,264.00 $5,119.00 $4,284.00 $3,265.00 $2,884.00 Year 0 1 2 3 4 5 26.0818% Given this information, and assuming a risk-adjusted discount rate of 14.0 percent for both projects. determine the internal rate of return (IRR) for the project with the highest net present value (NPV). Ⓒ25.6301% 25.1784% O24.2750% Project A -$10,356.00 O24.7267% $2,185.00 $4,294.00 $4,642.00 $6,368.00 $3,125.00

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 10P
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You are given the following information about the cash flows for Projects A and B:
Project B
$12,643.00
$6,264.00
$5.119.00
$4,284.00
$3,265.00
$2,884.00
Year
0
1
2
3
4
5
Given this information, and assuming a risk-adjusted discount rate of 14.0 percent for both projects,
determine the internal rate of return (IRR) for the project with the highest net present value (NPV).
26.0818%
25.6301%
25.1784%
Project A
-$10,356.00
$2,185.00
$4,294.00
$4,642.00
$6,360.00
$3,125.00
O24.2750%
Transcribed Image Text:You are given the following information about the cash flows for Projects A and B: Project B $12,643.00 $6,264.00 $5.119.00 $4,284.00 $3,265.00 $2,884.00 Year 0 1 2 3 4 5 Given this information, and assuming a risk-adjusted discount rate of 14.0 percent for both projects, determine the internal rate of return (IRR) for the project with the highest net present value (NPV). 26.0818% 25.6301% 25.1784% Project A -$10,356.00 $2,185.00 $4,294.00 $4,642.00 $6,360.00 $3,125.00 O24.2750%
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