Question: Clean Energy Corp is evaluating two new green projects, Project Green1 and Project Green2. The projected cash flows are: Year Project Green1 Project Green2 0
Clean Energy Corp is evaluating two new green projects, Project Green1 and Project Green2. The projected cash flows are:
Year | Project Green1 | Project Green2 |
0 | $(350) | $(300) |
1 | 100 | 90 |
2 | 120 | 110 |
3 | 140 | 130 |
4 | 160 | 150 |
The discount rate is 6%. You need to:
a. Calculate the discounted payback period for each project. b. Compute the NPV for both projects. c. Determine the IRR for each project. d. Assess which project is more financially viable. e. Explain the environmental impact of each project and its importance.
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