The following are the cash flows of two projects: Project B $ (260) 160 Year 1 2 3 Project A $ (260) 140 140 140 160 160

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section10.4: Internal Rate Of Return (irr)
Problem 2ST
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The following are the cash flows of two projects:
Year Project A
0
Đ the rt hoặc o
1
2
3
4
$ (260)
140
140
140
140
Project B
$ (260)
160
160
160
What are the internal rates of return on projects A and B?
Note: Enter your answers as a percent rounded to 2 decimal places.
Project
A
B
IRR
31.02 %
37.05 %
Transcribed Image Text:The following are the cash flows of two projects: Year Project A 0 Đ the rt hoặc o 1 2 3 4 $ (260) 140 140 140 140 Project B $ (260) 160 160 160 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR 31.02 % 37.05 %
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