This preview shows page 1. Sign up to view the full content.
Unformatted text preview: (b) If the cost of the project A is $75,000 and project B is $77,000 what are the net present values of the two projects? 13 A project will result in a return of $600,000 after three years and a further $470,000 return after five years. (a) If interest is 6.5% p.a. compounded monthly what is the current value of the combined returns? (b) If the project costs $720,000 to set up now, make an estimate of the internal rate of return using a trial and error method on your calculator. Then find the actual IRR using Excel....
View
Full
Document
This note was uploaded on 10/17/2010 for the course FF f taught by Professor F during the Spring '10 term at Clayton.
 Spring '10
 f

Click to edit the document details