Question: Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash

Consider the following two projects: Year 0 Year 1 Year 2

Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A -100 40 50 60 N/A B -73 30 30 Discount Rate 15% 15% 30 30 a. Assume that projects A and B are mutually exclusive. Find NPV for project A and project B. b. Find IRR for project A and project B. Based on results above, which project should you accept? c

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