Question: D17 fix B 6 00 A B C D E Your firm is considering the following two mutually exclusive projects. Suppose the 1 appropriate discount

D17 fix B 6 00 A B C D E Your firm is considering the following two mutually exclusive projects. Suppose the 1 appropriate discount rate is 8%. 2 Discount rate 8% 3 4 Part A. Calcualte NPVs and IRRs for both project, and discuss which project is preferred by 5 Year Project A Project B Which project is preferred? Why? 6 0 -500 -500 7 1 167 200 2 180 250 9 3 160 170 10 4 100 25 11 5 100 30 12 13 NPV 14 IRR 15 16 17 + 18 19 20 9

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