Page 1 of 1
Consider two independent projects with the following expected cash flows (expressed in $ millions)... End of year... Pro
Posted: Sun Jul 03, 2022 6:49 am
by answerhappygod
- Consider Two Independent Projects With The Following Expected Cash Flows Expressed In Millions End Of Year Pro 1 (61.65 KiB) Viewed 10 times
Consider two independent projects with the following expected cash flows (expressed in $ millions)... End of year... Project X Project Y 0 - 30 - 80 1 20 40 2 20 60 The cash flows at time zero represent the cost of each project (payable immediately). The internal rate of return of project X is 22% per annum, the internal rate of return of project Y is 15% per annum and the cost of capital for each project is 8% per annum. Which project(s) should you choose ?