Subsequent cash flows, It brings subsequent cash flows of

Subsequent cash flows

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Reference no: EM132047733

Project A costs 10,000 to implement today, and it brings subsequent cash flows of 5,900 at the end of year 1; 2,000 at the end of year 2; 5,000 at the end of year 3.

Project B's initial cost is 7,500, and subsequent cash flows are 5,000 per year for 3 years.

WACC is 8% for both projects.

Calculate NPV and IRR for each project, and decide which to recommend.

Reference no: EM132047733

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