9. PLMB Engineering firm has the choice to invest in one of two projects but not...

 

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9. PLMB Engineering firm has the choice to invest in one of two projects but not both. The IRR of the first project is 20.3% and that of the second project is 19%. The cash flows associated with both projects are as follows: Year O Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Project A -K150,000 K75,000 K65,000 K70,000 Project B -K150,000 K43,000 K38,000 K37,000 K45,000 K47,000 K43,000 If the firm's cost of capital is 15%, use the IRR investment appraisal method to determine which project should be accepted (10 Marks). 9. PLMB Engineering firm has the choice to invest in one of two projects but not both. The IRR of the first project is 20.3% and that of the second project is 19%. The cash flows associated with both projects are as follows: Year O Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Project A -K150,000 K75,000 K65,000 K70,000 Project B -K150,000 K43,000 K38,000 K37,000 K45,000 K47,000 K43,000 If the firm's cost of capital is 15%, use the IRR investment appraisal method to determine which project should be accepted (10 Marks).

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Lets calculate npv for both the projects Year project a project b Np... View the full answer