Consider the following cashflow of the two mutually exclusive projects. Assume that the discount rate for both projects is 10%. Year Project A Project B O -$380,000 -$625,000 1 292,000 396,000 2 165,000 319,000 3 107,000 204,000 1) Please fill in the following table Project A Project B NPV IRR 2) Based on the NPV, which project should be chosen?

Consider the following cashflow of the two mutually exclusive projects. Assume that the discount rate for both projects is 10%. Year Project A Project B O -$380,000 -$625,000 1 292,000 396,000 2 165,000 319,000 3 107,000 204,000 1) Please fill in the following table Project A Project B NPV IRR 2) Based on the NPV, which project should be chosen?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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