3. The net cash flow for two projects, A (fast food) and B (amusements), is as follows: Year Project A Project B 0 -420 000 -95 000 1 -5.000 -10 000 2 122 000 120 000 3 130 000 200 000 4 148 000 110 000 5 150 000 -50 000 (a) Use the net present value criterion to decide which project is the most profitable if a discount rate of (i) 6% and (ii) 8% is used. (b) Estimate the IRR of each project. Which project would now be considered more profitable?

3. The net cash flow for two projects, A (fast food) and B (amusements), is as follows: (a) Use the net present value criterion to decide which project is the most profitable if a discount rate of (i) 6% and (ii) 8% is used. (b) Estimate the IRR of each project. Which project would now be considered more profitable