Multiple Choice
A company is considering two mutually exclusive projects, A and B. Project A requires an initial investment of $200, followed by cash flows of $185, $40 and $15. Project B requires an initial investment of $200, followed by cash flows of $0, $50 and $230. What is the IRR of the project that is best for the company's shareholders? The firm's cost of capital is 10%.
A) 15.45%
B) 15.12%
C) 13.57%
D) 12.71%
Correct Answer:
Verified
Correct Answer:
Verified
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