Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $1 million. The projects are expected to produce the following net cash inflows: Year 0 123 Project A -$1,000 $525 $400 $300 Project B -$1,000 $400 $410 $415 Question: What is project A's IRR? (Just number, no other signs such as "$" or "%," round to two digits after decimal point) Question: What is project B's NPV if the cost of capital is 10 percent? (Just number, no other signs such as "$" or "%," round to an integer, no decimal point). Question: Which one would you buy? (write either "A" or "B")

Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $1 million. The projects are expected to produce the following net cash inflows: Year 0 123 Project A -$1,000 $525 $400 $300 Project B -$1,000 $400 $410 $415 Question: What is project A's IRR? (Just number, no other signs such as "$" or "%," round to two digits after decimal point) Question: What is project B's NPV if the cost of capital is 10 percent? (Just number, no other signs such as "$" or "%," round to an integer, no decimal point). Question: Which one would you buy? (write either "A" or "B")

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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