Compute the internal rate of return for each project


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Two mutually exclusive investment projects have the following forecasted cash flow:

Year    A B
0    $-20,000 $-20,000
1    10,000    0
2    10,000 0
3    10,000 0
4    10,000    60,000

Q1. Compute the internal rate of return for each project.

Q2. Compute the net present value for each project if the firm has a 10 percent cost of capital.

Q3. Which project should be adopted? Why?

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Project Management: Compute the internal rate of return for each project
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