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You are given the opportunity to invest in one of two projects. Project X requires an initial outlay of $35,000, and wil
Posted: Mon Nov 15, 2021 5:16 pm
by answerhappygod
- You Are Given The Opportunity To Invest In One Of Two Projects Project X Requires An Initial Outlay Of 35 000 And Wil 1 (35.9 KiB) Viewed 64 times
You are given the opportunity to invest in one of two projects. Project X requires an initial outlay of $35,000, and will receive $41,000 after 3 years. Project Y requires an initial outlay of $100,000 and will receive $130,000 after 4 years. Using the Internal Rate of Return approach, which project would be preferred? Assume that the cost of capital is 3% for each project. IRR = r, when NPV = 0 =