Calculate the npv and irr of each project


Problem: Consider the following project cash flows:

Year  ......................Project A...........Project B
0 investment.............-$200..............-$300
1...................................60..................200
2...................................70..................100
3...................................80..................100
4...................................80

1. Calculate the NPV of each project. Which project should be chosen if opportunity cost is 11%?

2. What are the internal rates of return on projects A and B?

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Finance Basics: Calculate the npv and irr of each project
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