Compute the internal rate of return for each project

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Reference no: EM131338235

Two mutually exclusive investment projects have the following forecasted cash flows:

Year	A	B
0	-$20,000	-$20,000
1	+10,000	0
2	+10,000	0
3	+10,000	0
4	+10,000	+60,000

a. Compute the internal rate of return for each project.

b. Compute the net present value for each project if the firm has a 10 percent cost of capital.

c. Which project should be adopted? Why?

Reference no: EM131338235

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