Please provide full and authentic solution. Please ensure the working out eases the eyes. Please dont make mistakes. Please double check when done. Greatly Appreciated!! Suppose you have $10,000 to invest in one of the following projects.Project Alpha requires an initial outlay of $10.000 and yields $12,000 in two years'time.Project Beta requires an outlay of $1,000 and yields say in the year and $5,750 theyear afterThe cost of funds available is 5% compounded annually. Using the aboveinformation, answer the following questions:a) Calculate the net present value for both projects. Answer to the nearest centb) Find the internal rate of return for both projects. Answer as a percent todecimals.c) Which of these projects you would choose to invest in and why?

The topic of the question is "Investment Evaluation: Net Present Value and Internal Rate of…

a) Calculate the net present value for both projects. Answer to the nearest cent b) Find the internal rate of return for both projects. Answer as a percent to 2 decimals. c) Which of these projects you would choose to invest in and why?

a) Calculate the net present value for both projects. Answer to the nearest cent b) Find the internal rate of return for both projects. Answer as a percent to 2 decimals. c) Which of these projects you would choose to invest in and why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please provide full and authentic solution. Please ensure the working out eases the eyes. Please dont make mistakes. Please double check when done. Greatly Appreciated!!

Suppose you have $10,000 to invest in one of the following projects.
Project Alpha requires an initial outlay of $10.000 and yields $12,000 in two years'
time.
Project Beta requires an outlay of $1,000 and yields say in the year and $5,750 the
year after
The cost of funds available is 5% compounded annually. Using the above
information, answer the following questions:
a) Calculate the net present value for both projects. Answer to the nearest cent
b) Find the internal rate of return for both projects. Answer as a percent to
decimals.
c) Which of these projects you would choose to invest in and why?

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