BUSN 5200 F2 2022: A company is considering two mutually exclusive projects, A and B. Project A requires an initial investment of $200, followed by cash flows of $185, $40, and $15. Project B requires an initial investment of $200, followed by cash flows of $0, $50, and $230. What is the IRR of the project that is best for the company’s shareholders? The firm’s cost of capital is 10 percent. v
Posted: December 24th, 2022
A company is considering two mutually exclusive projects, A and B. Project A requires an initial investment of $200, followed by cash flows of $185, $40, and $15. Project B requires an initial investment of $200, followed by cash flows of $0, $50, and $230. What is the IRR of the project that is best for the company’s shareholders? The firm’s cost of capital is 10 percent. v
15.45 percent
15.12 percent
13.57 percent
12.71 percent
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