Bernhard Stroh is the Master Brewer at the Lion's Head Brewery. Bernhard has the approval to brew a new beer, but can't decide which: 1) a wheat beer; or 2) a pale ale. Both beers require an initial investment of $1,000,000. The operating cash flows for each project are shown in the table. Lion's Head shareholders required a rate of return of 10%. The Wheat project has an IRR of 15.36% and the Ale project has an IRR of 15.89%. Which project should Bernhard choose (and why)?
| Year | Wheat | Ale |
| 0 | -1,000,000 | -1,000,000 |
| 1 | 200,000 | 900,000 |
| 2 | 1,100,000 | 300,000 |
◦ Choose the Ale project because its IRR is greater.
◦ Choose the Ale because its NPV is higher.
◦ Choose the Wheat because its NPV is higher.
◦ Choose the Wheat because it generates more operating cash flows.
◦ Choose either because they both have the same NPV.
galapagos sea lion
master biology chapter 22-25
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Secure drape under hip and top arm, and undrape back; stand in back at waist facing head. Apply ...
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