a) The following information is available in relation to two projects: Year 0123456 Project A Project...

 

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a) The following information is available in relation to two projects: Year 0123456 Project A Project B (5,000) (8,000) 2,500 1,500 1,000 2,000 1,000 2,500 500 1,000 1,500 1,000 1,000 2,500 Calculate the Net Present Value (NPV) for the above projects assuming that the organisation has proposed a discounting rate of 12%. Analyse the results and provide conclusions. Net present value calculations Analysis of results and conclusions [6+6 marks] [3 marks] b) Find the Internal Rates of Return (IRR) of project A in part (a) above. Analyse the outcome if IRR is used. IRR calculations Detailed analysis of the outcome [7 marks] [3 marks] a) The following information is available in relation to two projects: Year 0123456 Project A Project B (5,000) (8,000) 2,500 1,500 1,000 2,000 1,000 2,500 500 1,000 1,500 1,000 1,000 2,500 Calculate the Net Present Value (NPV) for the above projects assuming that the organisation has proposed a discounting rate of 12%. Analyse the results and provide conclusions. Net present value calculations Analysis of results and conclusions [6+6 marks] [3 marks] b) Find the Internal Rates of Return (IRR) of project A in part (a) above. Analyse the outcome if IRR is used. IRR calculations Detailed analysis of the outcome [7 marks] [3 marks]