| |
|
Cash Flows, Dollars |
|
|
| Project |
0 |
1 |
2 |
NPV |
IRR |
| A |
-30000 |
21000 |
21000 |
|
|
| B |
-50000 |
33000 |
33000 |
|
|
| WACC |
10% |
|
|
|
|
Question 1: Calculate the NPV and IRR for each project. The company's WACC is 10%.
Question 2: Assume only one percent can be undertakeen. Which project would you recommend and why would you?