What are the internal rates of return on projects


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

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Finance Basics: What are the internal rates of return on projects
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