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What are the two project net present value

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Your division is considering two investment projects, each of which requires an up-front expenditure of 20 million. You estimate that the investment will produce the following net cash flows:

Problem 1: What are the two project's net present values, assuming the cost of capital is 5%? 10%? 15%?

Problem 2: What are the two projects' IRRs at these same costs of capital?

Year          Project A           Project B
1          $5,000,000           $20,000,000
2          10,000,000         10,000,000
3            20,000,000           6,000,000

Reference no: EM132660724

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