Question: Consider two projects, A and B . a . Your boss has told you to evaluate these projects using either the payback period or the
Consider two projects, A and B
a Your boss has told you to evaluate these projects using either the payback period or the IRR.
What are the relative strengths and weaknesses of those methods? Do they apply in this
particular case?
b Use the better method to determine which is the better project. The cutoff for the payback
period is years, and the IRR must be above Be sure to indicate how you decided which
method is better.
Show how to do this by hand, not using excel whatsoever
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