Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Part C
Two mutually exclusive projects have projected cash flows as follows:
Project A
Project B
0
-$2,000
-2,000
1
$1,000
0
END OF YEAR
2
$1,000
0
3
$1,000
0
Requirement:
L Determine the internal rate of return for each project
II. Determine the net present value for project at discount rates of 10%
$1,000
6,000
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Transcribed Image Text:Part C Two mutually exclusive projects have projected cash flows as follows: Project A Project B 0 -$2,000 -2,000 1 $1,000 0 END OF YEAR 2 $1,000 0 3 $1,000 0 Requirement: L Determine the internal rate of return for each project II. Determine the net present value for project at discount rates of 10% $1,000 6,000
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