Math Problem Statement
a. What is the IRR for these project? Using the IRR decision rule, which project should the company accept? Is this decision necessarily correct?
b. If the required return is 11%, what is the NPV for each of these projects? Which project will the company choose if it applies the NPV decision rule?
c. Over what range of discount rates would the company choose project A? Project B? At what discount rate would the company be indifferent between these two projects? Explain.
{cashflowA} 0 year -$44,000 1 year $22,800 2year $17,700 3year 13,900 4year 10,300 {cashflow B} 0year $-44,000 1year $7,700 2year 14,500 3year 23,700 4year 26,100 解き方と答えを日本語で教えて
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Math Problem Analysis
Mathematical Concepts
Internal Rate of Return (IRR)
Net Present Value (NPV)
Discounted Cash Flow
Formulas
IRR calculation
NPV calculation
Theorems
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Suitable Grade Level
College level
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