NPV and IRR. Higher Ground Company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent. Year Project M Project N 0 $1 45,000 $

NPV and IRR. Higher Ground Company is presented with the following two

mutually exclusive projects. The required return for both projects is 15 percent.

Year Project M Project N

0  $1 45,000  $350,000

1 63,000 1 55,000

2 81 ,000 1 75,000

3 72,000 1 40,000

4 58,000 1 05,000

a. What is the IRR for each project?

b. What is the NPV for each project?

c. Which, if either, of the projects should the company accept?

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