The following data table shows the estimated cash flows for two mutually exclusive capital budgeting...
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Finance
The following data table shows the estimated cash flows for two mutually exclusive capital budgeting projects that Glan Event Company can invest in. The cost of capital for both projects is 10.00%. Based on the table and the information given, determine both projects NPV and IRR and decide which one yields a better outlook for the decision rationale of the projects.
Year | Project X | Project Y |
0 | -$120,000 | -$120,000 |
1 | $100,000 | $20,000 |
2 | $40,000 | $50,000 |
3 | $10,000 | $100,000 |
a - Proejct X
b- Projects Y and X have the same investment return so both of them
c - Neither of the projects
d- Project Y
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