2.1 A Corporation is considering two investment options: Project A and Project B. Both projects require...

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2.1 A Corporation is considering two investment options: Project A and Project B. Both projects require an initial investment of Rs. 50 crores. The cash flows for both projects are as follows: Project A Project B Year 1 10 crores 20 crores Year 2 20 crores 30 crores Year 3 30 crores 40 crores Year 4 40 crores 50 crores 50 crores 60 crores Year 5 The cost of capital for both projects is 10%. AMR Corporation plans to finance these projects using a mix of debt and equity. Tax considerations, depreciation and other tax-related factors are not included for simplicity. 1. Calculate the Project Internal Rate of Return (IRR) for both Project A and Project B. 2. Calculate the Equity Internal Rate of Return (IRR) for both Project A and Project B, assuming 70% debt financing at 8% interest rate. 2.1 A Corporation is considering two investment options: Project A and Project B. Both projects require an initial investment of Rs. 50 crores. The cash flows for both projects are as follows: Project A Project B Year 1 10 crores 20 crores Year 2 20 crores 30 crores Year 3 30 crores 40 crores Year 4 40 crores 50 crores 50 crores 60 crores Year 5 The cost of capital for both projects is 10%. AMR Corporation plans to finance these projects using a mix of debt and equity. Tax considerations, depreciation and other tax-related factors are not included for simplicity. 1. Calculate the Project Internal Rate of Return (IRR) for both Project A and Project B. 2. Calculate the Equity Internal Rate of Return (IRR) for both Project A and Project B, assuming 70% debt financing at 8% interest rate.