A = Two investment projects are characterized by cash flows A and B: B = -4000 -1000 1000 2000 4000 0 1 2 3 4 -4800 1000 500 1000 4500 0 1 2 3 4 Calculate the net discounted income NPV with reference rates i = 10% and i = 15%. Determine the IRR of the internal rate of return. Justify which investment project is preferred.

A = Two investment projects are characterized by cash flows A and B: B = -4000 -1000 1000 2000 4000 0 1 2 3 4 -4800 1000 500 1000 4500 0 1 2 3 4 Calculate the net discounted income NPV with reference rates i = 10% and i = 15%. Determine the IRR of the internal rate of return. Justify which investment project is preferred.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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