NET CASH FLOWS (IN $ 1,000) YEAR 1 2 4 6. PROJECT A -60 15 15 15 15 15 15 PROJECT B -80 30 20 18 15 12 10 The discount rate (and the WACC) is 8%. 1: The NPV of project A is

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NET CASH FLOWS (IN $ 1,000)<br>YEAR<br>1<br>2<br>4<br>6.<br>PROJECT A<br>-60<br>15<br>15<br>15<br>15<br>15<br>15<br>PROJECT B<br>-80<br>30<br>20<br>18<br>15<br>12<br>10<br>The discount rate (and the WACC) is 8%.<br>1: The NPV of project A is < the NPV of project B.<br>II: The IRR of project B is higher than 8%, but lower than 9%.<br>Explain with FULL step by step calculation, why & how case 1 & 2 = FALSE<br>

Extracted text: NET CASH FLOWS (IN $ 1,000) YEAR 1 2 4 6. PROJECT A -60 15 15 15 15 15 15 PROJECT B -80 30 20 18 15 12 10 The discount rate (and the WACC) is 8%. 1: The NPV of project A is < the="" npv="" of="" project="" b.="" ii:="" the="" irr="" of="" project="" b="" is="" higher="" than="" 8%,="" but="" lower="" than="" 9%.="" explain="" with="" full="" step="" by="" step="" calculation,="" why="" &="" how="" case="" 1="" &="" 2="">

Jun 04, 2022

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NET CASH FLOWS (IN $ 1,000) YEAR 1 2 4 6. PROJECT A -60 15 15 15 15 15 15 PROJECT B -80 30 20 18 15 12 10 The discount rate (and the WACC) is 8%. 1: The NPV of project A is

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