Fin 370 Week 4 Team Assignment

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Category: Business and Industry

Date Submitted: 12/19/2014 02:56 PM

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|12. Caledonia is considering two additional mutually exclusive projects. The | |

|cash flow associated with these projects are as follows: | | | | |

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| |b. What is each project's net present value? | | | | | |

| |c. What is each project's internal rate of return? | | | | | |

| |d. What has caused the ranking conflict? | | | | | | |

| |e. Which project should be accepted? Why? | | | | | |

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| |Year | |0 |1 |2 |

|Year | |0 |1 |2 |3 |4 |5 | | | | | | | | | | | | | | | | |In flow | | | | | | | | | | | | Revenues (after Tax) | (100) | - | - | - | - | 200 | | 100 | | | | | (100) | - | - | - | - | 200 | | 100 | | |Out flow | | | | | | | | | | | | Cost | | | | | | | | | - | | |...