Which projects should be accepted if the cost of capital

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1. Timco is now considering two independent projects utilizing the internal rate of return technique. Project A has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project B has an initial investment of $120,000 and cash inflows at the end of each of the next four years of $40,000.

(a) Which projects should be accepted if the cost of capital is 15%?

(b) Which projects should be accepted if the cost of capital is 10%

Reference no: EM132577716

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