Calculate the internal rate of return for project a

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Mattel Inc. is evaluating two mutually exclusive projects.  The required rate of return on these projects is 8%.  

Year Project A Project B

0 -440,000 -850,000

1 150,000 275,000

2 150,000 275,000

3 150,000 275,000

4 150,000 275,000

Questions:

  1. Calculate the internal rate of return for Project A.
  2. Calculate the net present value for Project B.
  3. Calculate the profitability index for Project B.

Reference no: EM132392806

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