NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The...
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NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 12%, has estimated its cash flows as shown in the following table. a. Calculate the NPV of each project, and assess its acceptability. b. Calculate the IRR for each project, and assess its acceptability. Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project A $120,000 Project B $87,000 Initial investment (CFo) Cash inflows (CF) 520,000 S20,000 S30,000 S60,000 $55,000 50,000 $40,000 35,000 $10,000 55,000
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