Company B is deciding which between the 2 projects should it invest in (supported by the cash flow patterns shown below). The company's cost of capital is approximately 9% but due to the current...


Company B is deciding which between the 2 projects should it invest in (supported by the cash flow patterns shown below). The company's cost of capital is approximately 9% but due to the current economic environment, its cost of equity may increase and may be a bit more than the approximated value.








































YearProject 1Project 2
0 (initial outlay)-13 million-12 million
13 million8 million
23 million6 million
35 million1 million
45 million1 million
55 million1 million


calculate the NPV and IRR of both projects



Jun 04, 2022
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