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What are the two projects irrs at same costs of capital

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Question: 1) 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:

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

- 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             6,000,00

Reference no: EM132716213

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