# Question: Consider the following cash flows of two mutually exclusive projects

Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 10 percent.

a. Based on the payback period, which project should be taken?

b. Based on the NPV, which project should be taken?

c. Based on the IRR, which project should be taken?

d. Based on the above analysis, is incremental IRR analysis necessary? If yes, please conduct

the analysis.

a. Based on the payback period, which project should be taken?

b. Based on the NPV, which project should be taken?

c. Based on the IRR, which project should be taken?

d. Based on the above analysis, is incremental IRR analysis necessary? If yes, please conduct

the analysis.

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