Problem:
Bedknobs and Broomsticks, Inc., has the following two projects available. The required return is 14%
PLEASE SEE ATTACHED SPREADSHEET
a) What is the IRR for each project?
b) What is the NPV for each project?
c) Which, if either, of these two projects should the company choose?
Year Project K Project S
0 -100,000 -150,000
1 30,000 70,000
2 30,000 50,000
3 30,000 60,000
4 20,000 30,000