Question: Hello :) I'm working on these questions now. I'd like to know the answers to see if I'm doing correct. Can you help me? I

Hello :)

I'm working on these questions now.

I'd like to know the answers to see if I'm doing correct.

Can you help me? I really appreciate your help!

(a) Create its cash flows and evaluate the financial viability of the modernization and the new plant

a. Net present value (NPV)

b. Internal Rate of Return (IRR)

c. calculate the profitability index

(b) Do the NPV and IRR method give the same accept/reject signals?

(c) Explain why the NPV and IRR methods can give divergent signals when evaluating mutually exclusive alternatives.

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