Consider the two mutually exlusive investments: Investments cash flow in year Y

Question

Consider the two mutually exlusive investments:

Investments cash flow in year                                   Y                         z

1                                                                                 100                     700

2                                                                                   600                    700

3                                                                                    600                     700

Cost                                                                                800                    1,500

(a.) Determine each investment's IRR

(b)   Using a hurdle rate of 8 percent determine each investment's NPV

(c.) Which investment is the most desireable? Why?

Show how your got answer,

Explanation / Answer

a)Let IRR BE

a)Let IRR BE

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.