Beta Co. is considering two projects. Their required rate of return is 8%. Project A $110,000 $80,000 B $55,838 $43,034 2 years 2 years Initial investment cost Annual cash flows Life of the project a) Compute the present value factor and the IRR for the two projects. Please make sure your final answers for the present value factor are accurate to 3 decimal places and the ones for the IRR are accurate to the nearest whole percent. Project Present value factor IRR 0.508 13% 0.538 13% B

Beta Co. is considering two projects. Their required rate of return is 8%. Project A $110,000 $80,000 B $55,838 $43,034 2 years 2 years Initial investment cost Annual cash flows Life of the project a) Compute the present value factor and the IRR for the two projects. Please make sure your final answers for the present value factor are accurate to 3 decimal places and the ones for the IRR are accurate to the nearest whole percent. Project Present value factor IRR 0.508 13% 0.538 13% B

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...

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