Calculate the irr-pi and npv

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A company has $20 million available to invest in new projects. There are three independent projects that it is considering. The after tax cashflows of the projects are as follow:

project A: Investment required: -20million; Year 1 cash flow: 20million; Year 2 cash flow: 10million.

project B: Investment required: -10million; Year 1 cash flow: 8million; Year 2 cash flow: 7million.

project C: Investment required: -10million; Year 1 cash flow: 6million; Year 2 cash flow: 10million.

Calculate the IRR, PI(profitability index), and NPV of each of the two-year projects and recommend which project(s) the company should invest in (and why). The company's cost of capital is 15%

Reference no: EM132483970

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