Chapter 7

Example You have two proposals to choice between. The initial proposal has a cash flow that is different than another one, which the cash inflow is brought by selling the building for $400,000 at the end of the first year. Using IRR, which do you prefer? Project C0 C1 C2 C3 IRR NPV@14% NPV@7% initial -350000 16000 16000 466000 12.96% -$8000 $59000 ................
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