Tara is evaluating two mutually exclusive capital budgeting…
Tara is evaluating two mutually exclusive capital budgeting projects that have the following characteristics: Cash Flow Year Project Q Project R 0 $(4,000) $(4,000) 1 0 3,500 2 5,000 1,100 IRR 11.8% 12.0% If the firm’s required rate of return (k) is 10 percent, which project should be purchased?