Net present value of the project with highest irr


Problem: Green Grocers is deciding among two mutually exclusive projects. The two projects have the following cash flows: .

Year Project A Cash Flow Project B Cash Flow

0 -$50,000 -$30,000
1 10,000 6,000
2 15,000 12,000
3 40,000 18,000
4 20,000 12,000

The company's weighted average cost of capital is 10 percent (WACC = 10%). What is the net present value (NPV) of the project with the highest internal rate of return (IRR)?

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Finance Basics: Net present value of the project with highest irr
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