单选题 Wreathfield, Inc. is choosing between two mutually exclusive projects. The cash flows for the two projects are below. The firm has a cost of capital of 10%, and the risk of the projects is equivalent to the average risk of the firm.
0
1
2
3
4
5
6
A：
-12000
4000
5000
6000
B：
-20000
3000
3000
3000
5000
8000
8000
The internal rate of return (IRR) of projects A and B respectively are closest to: Project A Project B ①A. 11.22% 10.50%
②B. 12.33% 14.26%
③C. 11.22% 14.26%
A．① B．② C．③
【正确答案】 A
【答案解析】
0
1
2
3
4
5
Project A
-$12000
$4000
$5000
$6000
Project B
-$20000
$3000
$3000
$3000
$5000
$8000
Project A: CF0=12000; CF1=4000; CF2=5000; CF3=6000; CPT→IRR=11.22%
Project B: same process. IRR=10.5%