Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Consider the following investment projects for SDL Engineering. All of the projects have a three-year investment life:
Project’s Cash Flow ($) |
||||
Time (n) |
Project A |
Project B |
Project C |
Project D |
0 |
-$1,500 |
-$1,200 |
-$1,600 |
-$3,000 |
1 |
0 |
$600 |
-$1,800 |
$800 |
2 |
0 |
$800 |
$800 |
$1,900 |
3 |
$3,000 |
$1,500 |
$2,500 |
$2,300 |
- Compute the Net Present worth of each project where interest rate is 9%.
- Which project do you recommend based on the NPW? Other than the NPW, why else would you recommend this project? (you will be using the same rate that was for part A for this part.
- Calculate the
IRR for each project
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