What is the irr for each of these projects if you apply the


NPV versus IRR. Bates & Reid. LLC, has identified the following two mutually exclusive projects:

Year

Cash Flow (A)

Cash Flow (A)

0

-$40,000

-$40,000

1

24,000

24,000

2

20,000

20,000

3

16,000

16,000

4

12,000

12,000

a. What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct?

b. If the required return is 11 percent. what is the NPV for each of these projects? Which project will you choose if you apply the NPV decision rule"?

c. Over what range of discount rates would you choose Project A"? Project B? At what discount rate would you be indifferent between these two projects? Explain.

Request for Solution File

Ask an Expert for Answer!!
HR Management: What is the irr for each of these projects if you apply the
Reference No:- TGS01097606

Expected delivery within 24 Hours