Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent....
Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project are given in the following table.
| Year | Project 1 | Project 2 | ||
| 0 | -$1,266,858 | -$1,100,968 | ||
| 1 | 256,000 | 319,000 | ||
| 2 | 318,000 | 319,000 | ||
| 3 | 480,000 | 319,000 | ||
| 4 | 483,000 | 319,000 | ||
| 5 | 773,000 | 319,000 |
NPV of project 1 is$
NPV of project 2 is$
IRR of project 1 is %
IRR of project 2 is %
Crane Corp should accept:
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Crane Corp. management is evaluating two mutually exclusive
projects. The cost of capital is 15 percent....
Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent....
Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project are given in the following table. Year Project 1 Project 2 0 $1,190,556 -$1,107,928 225,000 315,000 315,000 315,000 405,000 315,000 450,000 315,000 675,000 315,000 Calculate NPV and IRR of two projects. (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.. 1,525....
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