NPV verses IRR. Consider the following two mutually exclusive projects:
Year Cash Flow (X) Cash Flow (Y)
0 -15,000 -15,000
1 6,800 7,470
2 7,380 7,640
3 4,900 3,810
Sketch the NPV profiles for X and Y over a range of discount rates from zero to 25 percent. What is the crossover rate for these two projects?
NPV verses IRR. Consider the following two mutually exclusive projects:
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