Scrooge inc has two mutually exclusive projects available


Scrooge Inc. has two mutually exclusive projects available whose cash flows are: Year 0 1 2 3 4 5 Project A -20,000 12,000 8,000 6,000 4,000 2,000 Project B -20,000 9,000 6,000 6,000 8,000 6,000 The required rate of return is 14% What is the NPV of Project A?

What is the IRR of Project B?

What is the profitability index of Project B?

At what discount rate would you be indifferent between the two projects?

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Financial Management: Scrooge inc has two mutually exclusive projects available
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