Determine irr for budget committee


Problem: The budget committee has received the following projects. They are mutually exclusive. The Company uses 10% as the rate of return.

Year Project A Project B
0 - 30,000 - 60,000
1 10,000 10,000
2 10,000 10,000
3 10,000 20,000
4 10,000 20,000
5 5,000 30,000
Total +20,000    +40,000
NPV +7,910    +15,820

What is the IRR for each?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determine irr for budget committee
Reference No:- TGS02051075

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)

2015 ©TutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.