3) Zellars, Inc. is considering two mutually exclusive projects, A and B. Projec

Question

3) Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs
$75,000 and is expected to generate $48,000 in year one and $45,000 in year two.
Project B costs $80,000 and is expected to generate $34,000 in year one, $37,000
in year two, $26,000 in year three, and $25,000 in year four. Zellars, Inc.’s required
rate of return for these projects is 10%. The internal rate of return for Project B is:
a. 18.64%
b. 16.77%
c. 20.79%
d. 26.74%

I am stuck on this question. I would really appriciate your help.

Explanation / Answer

c. 20.79%

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects